<PAGE>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 4, 1995 COMMISSION FILE NO. 1-6651
HILLENBRAND INDUSTRIES, INC.
(Exact name of registrant as specified in its charter)
INDIANA 35-1160484
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
700 STATE ROUTE 46 EAST
BATESVILLE, INDIANA 47006-8835
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (812) 934-7000
NOT APPLICABLE
(Former name, former address and former
fiscal year, if changed since last report)
INDICATE BY CHECK MARK WHETHER THE REGISTRANT (1) HAS FILED ALL REPORTS
REQUIRED TO BE FILED BY SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF
1934 DURING THE PRECEDING 12 MONTHS (OR FOR SUCH SHORTER PERIOD THAT THE
REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS), AND (2) HAS BEEN SUBJECT TO SUCH
FILING REQUIREMENTS FOR THE PAST 90 DAYS.
Yes X No
-------- --------
INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES
OF COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.
Common Stock, without par value - 70,807,284 as of April 6, 1995.
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1
<PAGE>
HILLENBRAND INDUSTRIES, INC.
INDEX TO FORM 10-Q
Page
----
PART I - FINANCIAL INFORMATION
Item 1 - Financial Statements
Consolidated Income for the Three Months 3
Ended 3/04/95 and 2/26/94
Consolidated Cash Flows for the Three Months 4
Ended 3/04/95 and 2/26/94
Consolidated Balance Sheet, 5
3/04/95 and 12/03/94
Notes to Consolidated Financial Statements 6-8
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-10
PART II - OTHER INFORMATION
Item 6 - Exhibits and Reports on Form 8-K 11
SIGNATURES 11
2
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
Hillenbrand Industries, Inc. and Subsidiaries
Consolidated Income
<TABLE>
<CAPTION>
(In Thousands Except
Per Share Data)
------------------------
Three Months Ended
------------------------
03/04/95 02/26/94
-------- --------
<S> <C> <C>
Net revenues . . . . . . . . . . . . . . . . . . . $396,277 $377,406
Cost of revenues . . . . . . . . . . . . . . . . . 220,689 199,222
Administrative, dist.
and selling expenses. . . . . . . . . . . . . . . 125,716 113,092
-------- --------
Operating profit . . . . . . . . . . . . . . . . . 49,872 65,092
Interest expense . . . . . . . . . . . . . . . . . (5,267) (4,870)
Other income (expense), net. . . . . . . . . . . . (99) 766
-------- --------
Income before income taxes . . . . . . . . . . . . 44,506 60,988
Income taxes . . . . . . . . . . . . . . . . . . . 17,001 23,297
-------- --------
Net income . . . . . . . . . . . . . . . . . . . . $ 27,505 $ 37,691
-------- --------
-------- --------
Earnings per common share. . . . . . . . . . . . . $ .39 $ .53
-------- --------
-------- --------
Dividends per common share . . . . . . . . . . . . $ .15 $ .1425
-------- --------
-------- --------
Average shares outstanding . . . . . . . . . . . . 70,885 71,378
-------- --------
-------- --------
</TABLE>
See Notes to Consolidated Financial Statements
3
<PAGE>
Hillenbrand Industries, Inc. and Subsidiaries
Consolidated Cash Flows
<TABLE>
<CAPTION>
(In Thousands)
-----------------------
Three Months Ended
-----------------------
03/04/95 02/26/94
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . $ 27,505 $ 37,691
Adjustments to reconcile net income
to net cash flows from operating
activities:
Depreciation and amortization. . . . . . . . . 23,841 23,298
Change in noncurrent deferred
income taxes. . . . . . . . . . . . . . . . . (2,554) (4,312)
Change in net working capital
excluding cash, current debt and
acquisitions. . . . . . . . . . . . . . . . . (10,996) (13,442)
Change in insurance items:
Benefit reserves. . . . . . . . . . . . . . . 50,017 42,614
Unearned revenue. . . . . . . . . . . . . . . 17,932 17,250
Deferred acquisition costs. . . . . . . . . . (12,923) (12,712)
Investments, net. . . . . . . . . . . . . . . (52,653) (36,621)
Other, net . . . . . . . . . . . . . . . . . . 14,703 (6,205)
-------- --------
Net cash flows from operating
activities. . . . . . . . . . . . . . . . . . . . 54,872 47,561
-------- --------
Cash flows from investing activities:
Capital expenditures, net. . . . . . . . . . . . (16,314) (20,451)
Acquisition of businesses. . . . . . . . . . . . -- (45,531)
-------- --------
Net cash flows from investing
activities. . . . . . . . . . . . . . . . . . . . (16,314) (65,982)
-------- --------
Cash flows from financing activities:
Additions (reductions)to debt, net . . . . . . . (2,625) 101,278
Payment of cash dividends. . . . . . . . . . . . (10,621) (10,191)
Treasury stock acquisitions. . . . . . . . . . . (3,539) (637)
-------- --------
Net cash flows from financing
activities. . . . . . . . . . . . . . . . . . . . (16,785) 90,450
-------- --------
Total cash flows . . . . . . . . . . . . . . . . . 21,773 72,029
Cash and cash equivalents:
At beginning of period. . . . . . . . . . . . . . 120,359 210,157
-------- --------
At end of period. . . . . . . . . . . . . . . . . $142,132 $282,186
-------- --------
-------- --------
</TABLE>
See Notes to Consolidated Financial Statements
4
<PAGE>
Hillenbrand Industries, Inc. and Subsidiaries
Consolidated Balance Sheet
<TABLE>
<CAPTION>
(In Thousands)
--------------
03/04/95 12/03/94
ASSETS -------- --------
<S> <C> <C>
Current assets:
Cash and cash equivalents. . . . . . . . . $ 142,132 $ 120,359
Trade receivables. . . . . . . . . . . . . 295,229 299,598
Inventories. . . . . . . . . . . . . . . . 110,631 104,229
Other. . . . . . . . . . . . . . . . . . . 42,939 42,275
-------- --------
Total current assets. . . . . . . . . . . 590,931 566,461
Equipment leased to others, net. . . . . . . 78,541 76,122
Property, net. . . . . . . . . . . . . . . . 275,137 282,470
Other assets:
Intangible assets, net . . . . . . . . . . 186,558 188,268
Other assets . . . . . . . . . . . . . . . 39,735 44,254
-------- --------
Total other assets. . . . . . . . . . . . 226,293 232,522
Insurance assets:
Investments. . . . . . . . . . . . . . . . 1,202,890 1,198,539
Deferred acquisition costs . . . . . . . . 294,112 281,189
Deferred income taxes. . . . . . . . . . . 63,812 43,051
Other. . . . . . . . . . . . . . . . . . . 31,423 33,799
-------- --------
Total insurance assets. . . . . . . . . . 1,592,237 1,556,578
--------- ---------
Total assets . . . . . . . . . . . . . . . . $2,763,139 $2,714,153
--------- ---------
--------- ---------
LIABILITIES (In Thousands)
--------------
03/04/95 12/03/94
-------- --------
Current liabilities:
Short-term debt. . . . . . . . . . . . . . $ 23,651 $ 25,206
Current portion of long-term debt. . . . . 1,299 1,805
Trade accounts payable . . . . . . . . . . 57,168 52,427
Other. . . . . . . . . . . . . . . . . . . 171,420 179,751
-------- --------
Total current liabilities . . . . . . . . 253,538 259,189
Other liabilities:
Long-term debt . . . . . . . . . . . . . . 208,165 208,729
Other long-term liabilities. . . . . . . . 83,494 78,045
Deferred income taxes. . . . . . . . . . . 20,771 19,470
-------- --------
Total other liabilities . . . . . . . . . 312,430 306,244
Insurance liabilities:
Benefit reserves . . . . . . . . . . . . . 1,110,001 1,059,984
Unearned revenue . . . . . . . . . . . . . 398,525 380,593
General liabilities. . . . . . . . . . . . 15,392 14,652
-------- --------
Total insurance liabilities . . . . . . . 1,523,918 1,455,229
--------- ---------
Total liabilities. . . . . . . . . . . . . . 2,089,886 2,020,662
--------- ---------
SHAREHOLDERS' EQUITY
Common stock . . . . . . . . . . . . . . . 4,442 4,442
Additional paid-in capital . . . . . . . . 13,173 11,587
Retained earnings. . . . . . . . . . . . . 845,628 828,744
Accumulated unrealized loss on
investments . . . . . . . . . . . . . . . (31,396) --
Foreign currency translation adjustment. . 6,455 10,478
Treasury stock . . . . . . . . . . . . . . (165,049) (161,760)
-------- --------
Total shareholders' equity. . . . . . . . 673,253 693,491
-------- --------
Total liabilities and
shareholders' equity. . . . . . . . . . . . $2,763,139 $2,714,153
--------- ---------
--------- ---------
</TABLE>
See Notes to Consolidated Financial Statements
5
<PAGE>
Hillenbrand Industries, Inc. and Subsidiaries
Notes to Consolidated Financial Statements
(Dollars in thousands)
1. Adjustments
The unaudited, condensed consolidated financial statements appearing in
this quarterly report on Form 10-Q should be read in conjunction with the
financial statements and notes thereto included in the Company's latest
annual report. Certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted. The
statements herein have been prepared in accordance with the Company's
understanding of the instructions to Form 10-Q. In the opinion of
management, such financial statements include all adjustments necessary to
present fairly the financial position, results of operations, and cash
flows, for the interim periods.
2. Supplementary Balance Sheet Information
The following information pertains to non-insurance assets and consolidated
shareholders' equity:
<TABLE>
<CAPTION>
3/04/95 12/03/94
------- --------
<S> <C> <C>
Allowance for possible losses and
discounts on trade receivables . . . . . $ 12,328 $ 13,982
Accumulated depreciation of equipment
leased to others and property. . . . . . $493,032 $477,634
Accumulated amortization of intangible
assets . . . . . . . . . . . . . . . . . $133,594 $133,181
Capital Stock:
Preferred stock, without par value:
Authorized 1,000,000 shares;
Shares issued . . . . . . . . . . . . None None
Common stock, without par value:
Authorized 199,000,000 shares;
Shares issued.. . . . . . . . . . . . 80,323,912 80,323,912
</TABLE>
The Company reclassified the current deferred income tax asset from "other
current liabilities" to "other current assets". The balance sheet at
December 3, 1994 was restated to reflect this change. This asset was $20.3
million at December 3, 1994 and $20.5 million at March 4, 1995.
6
<PAGE>
3. Earnings per Common Share
Earnings per common share were computed by dividing net income by the
average number of common shares, including restricted shares issued to
employees, outstanding during each period (70,884,748 for the three months
of 1995 and 71,378,272 for the three months of 1994). Under a program
begun in 1983, the Company has acquired to date 10,953,672 shares of common
stock of which 1,497,889 shares have been reissued for general corporate
purposes. The remaining treasury stock has been excluded in determining
the average number of shares outstanding during each period. Common share
equivalents arising from shares awarded under the Senior Executive
Compensation Program which was initiated in fiscal year 1978 have also been
excluded from the computation because of their insignificant dilutive
effect.
4. Accounting Change
Effective December 4, 1994, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 115, "Accounting for Certain Investments in
Debt and Equity Securities." In accordance with the provisions of this
standard, investment assets of the Company's insurance subsidiary
(Forethought) classified as "available-for-sale" were written down $48.3
million to their fair value of $1,156.4 million on March 4, 1995. The
insurance deferred tax asset was increased $16.9 million to record the
income tax effect and shareholders' equity ("accumulated unrealized loss on
investments") was decreased $31.4 million. Adoption of this standard did
not affect results of operations or cash flows.
5. Contingencies
In 1993, the Company's subsidiary, Hill-Rom, Inc., was notified that it is
part of an investigation into the hospital bed industry by the Antitrust
Division of the Department of Justice (the "DOJ"). As a result, the
Company was issued a Civil Investigation Demand by the DOJ and served with
a subpoena to allow review of internal Hill-Rom files and business
practices to determine any irregularities. The Company is cooperating with
the DOJ in its investigation. Although the Company believes that it is not
in violation of any antitrust law or statute and expects no material,
adverse financial effect, it is impossible to predict with certainty when
the investigation will be concluded, what the outcome of the investigation
will be and what effect, if any, the outcome might have on the Company's
financial condition, results of operations or cash flows.
7
<PAGE>
The Company has voluntarily entered into remediation agreements with
environmental authorities, and has been issued Notices of Violation
alleging violations of certain permit conditions. Accordingly, the Company
is in the process of implementing plans of abatement in compliance with
agreements and regulations. The Company has also been notified as a
potentially responsible party in investigations of certain offsite disposal
facilities. The cost of all plans of abatement and waste site cleanups in
which the Company is currently involved is not expected to exceed $10.0
million. The Company has provided adequate reserves in its financial
statements for these matters. Changes in environmental law might affect
the Company's future operations, capital expenditures and earnings. The
cost of complying with these provisions is not known.
The Company is subject to various other claims and contingencies arising
out of the normal course of business, including those relating to
commercial transactions, product liability, safety, health, taxes,
environmental and other matters. Management believes that the ultimate
liability, if any, in excess of amounts already provided or covered by
insurance, is not likely to have a material adverse effect on the Company's
financial condition, results of operations or cash flows.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
First Quarter 1995 Compared with First Quarter 1994
Net revenues of $396.3 million were up $18.9 million, or 5.0%, with growth
reported in both segments. In the Funeral Services segment, Batesville Casket
Company revenues grew marginally as lower casket unit volume (due to a lower
death rate) was offset by increased sales of Options-TM- cremation products and
a moderate casket price increase that took effect in the middle of the quarter.
At Forethought, earned premium revenue was higher due to increased insurance in
force. Investment income grew due to a larger invested asset base and higher
average yields. Revenues in the Health Care segment were up year over year due
to the inclusion of results for L. & C. Arnold AG, which was acquired by Hill-
Rom in February 1994, and growth in therapy revenues in the U.S. long-term care
and home care markets. In addition, excluding the effect of the Arnold
acquisition, capital shipments and therapy revenues were higher in Europe.
These items were largely offset by a decline in capital shipments in the U.S.
acute care market and lower average therapy rental rates, reflecting a shift in
product mix. Sales at Block Medical were up marginally as higher disposable
infusion pump unit volume was offset by lower per unit selling prices and lower
unit shipments of ambulatory electronic pumps. Medeco Security Locks reported
increased sales in door security and route management businesses, and lower
other O E M and export shipments.
8
<PAGE>
Gross profit of $175.6 million was down $2.6 million, or 1.5%, compared with the
first quarter of 1994. As a percentage of revenues, gross profit declined from
47.2% in 1994 to 44.3% in 1995. Profitability in the Funeral Services segment
was negatively affected by increased sales of lower margin cremation products at
Batesville Casket. Margins in the Health Care segment were down significantly.
Hill-Rom's gross profit margin was lower due to the decline in U.S. acute care
capital shipments, increased used furniture and European sales, both of which
carry lower margins, increased discount levels, increased service costs to
support the expanding home care and long-term care markets and the
aforementioned lower average therapy rental rates. Profit margins at Block and
Medeco improved significantly due to lower manufacturing costs.
Administrative, distribution and selling expenses increased $12.6 million, or
11.2%. As a percentage of revenues they increased from 30.0% in the first
quarter of 1994 to 31.7% in 1995. The Funeral Services segment continues to
benefit from improved efficiency and economies of scale at both Batesville
Casket and Forethought as growth in these expenses was well below the growth in
revenues. In the Health Care segment, these expenses, and their relationship to
revenues, were negatively affected by the inclusion of the operations of Arnold,
lower capital shipments in the U.S. acute care market, and increased service
costs in the home care and long-term care markets. This was partially offset by
lower expenses and improved efficiency at Block.
In summary, operating profit increased moderately in the Funeral Services
segment and decreased in the Health Care segment.
Interest expense of $5.3 million was up $397 thousand, or 8.2%, compared with
the first quarter of 1994. Interest on $100.0 million of debentures issued on
February 23, 1994 and higher levels of debt in Europe were mostly offset by
prepayment in the second quarter of 1994 of a $75.0 million promissory note
relative to the acquisition of SSI Medical Services in 1985.
Other expense, net, includes interest income and other miscellaneous income and
expense. Compared with 1994, higher miscellaneous expenses associated with
European operations were partially offset by higher interest income.
The Company's effective income tax rate was 38.2% in the first quarter of both
1994 and 1995.
LIQUIDITY AND CAPITAL RESOURCES
Net cash flows from operating activities and selected borrowings represent the
Company's primary sources of funds for growth of the business, including capital
expenditures and acquisitions. Cash and cash equivalents (excluding the
investments of insurance operations) increased from $120.4 million at the end of
1994 to $142.1 million at the end of the first quarter of 1995.
9
<PAGE>
Net cash flows from operating activities of $54.9 million was $7.3 million
higher than in the first quarter of 1994. Lower net income was offset by a
smaller net increase in working capital and deferred taxes, and other non-cash
adjustments to net income. In the first quarter of 1995, accounts receivable
declined $4.4 million due primarily to lower capital shipments at Hill-Rom.
Days sales outstanding was 76 at quarter-end compared with 78 at year-end 1994.
Inventories grew $6.4 million in the first quarter and annualized inventory
turns on revenues of 12.7 fell from 13.7 at year-end 1994 due to increased
product evaluation inventory at Hill-Rom. Current liabilities, excluding debt
and acquisition-related items, declined $8.3 million reflecting lower
production levels at Hill-Rom. The year to year change in other non-cash
adjustments to net income was largely attributable to the liability associated
with mortgage-backed dollar roll contracts purchased by Forethought in 1993 and
sold in 1994 (the cash flow effect of this item is offset in the investments
line), and increases in other long-term accrued expenses. Forethought generates
sufficient cash to more than adequately fund all statutory requirements.
Capital expenditures of $16.3 million were $4.1 million lower than in the first
quarter of 1994. Increased production of therapy rental units at Hill-Rom was
offset by reduced spending on vehicle replacements and other items.
Acquisitions in 1994 included Arnold; Industrias Arga, a Mexican casket
manufacturer and distributor; and Lincoln Casket, a Michigan-based casket
distributor.
Debt payments in the first quarter of 1995 were related to European operations.
In last year's first quarter, $100.0 million of debentures were issued. The
Company's long-term debt-to-equity ratio was 30.9% on March 4 compared with
30.1% at year-end. Excluding the effect on equity of adopting SFAS No. 115
(Note 4), the quarter-end ratio was 29.5%. Additional debt capacity affords the
Company considerable flexibility in the funding of future growth.
FACTORS THAT MAY AFFECT FUTURE RESULTS
Self-reform of the health care industry and its negative effect on demand in the
U.S. and European acute care capital markets is expected to continue throughout
1995 and beyond. Competitive pressures and losses associated with certain
European operations will also continue to negatively affect Hill-Rom's
profitability. The lower than anticipated death rate experienced by Batesville
Casket may or may not reverse during the last three quarters. The Company will
continue to invest in its businesses and market opportunities.
10
<PAGE>
PART II - OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
B. Reports on Form 8-K
There were no reports filed on Form 8-K during the first quarter
ended March 4, 1995.
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.
HILLENBRAND INDUSTRIES, INC.
DATE: April 17, 1995 BY: /s/ Tom E. Brewer
-----------------
Tom E. Brewer
Senior Vice President
and Chief Financial Officer
DATE: April 17, 1995 BY: /s/ James D. Van De Velde
-------------------------
James D. Van De Velde
Vice President - Controller
11
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS INCLUDED UNDER ITEM 1 OF THE COMPANY'S FORM
10-Q FOR THE QUARTER ENDED MARCH 4, 1995, AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-02-1995
<PERIOD-START> DEC-04-1994
<PERIOD-END> MAR-04-1995
<CASH> 142,132
<SECURITIES> 0
<RECEIVABLES> 307,557
<ALLOWANCES> (12,328)
<INVENTORY> 110,631
<CURRENT-ASSETS> 590,931
<PP&E> 846,710
<DEPRECIATION> (493,032)
<TOTAL-ASSETS> 2,763,139
<CURRENT-LIABILITIES> 253,538
<BONDS> 208,165
<COMMON> 4,442
0
0
<OTHER-SE> 668,811
<TOTAL-LIABILITY-AND-EQUITY> 2,763,139
<SALES> 0
<TOTAL-REVENUES> 396,277
<CGS> 0
<TOTAL-COSTS> (220,689)
<OTHER-EXPENSES> (125,716)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (5,267)
<INCOME-PRETAX> 44,506
<INCOME-TAX> 17,001
<INCOME-CONTINUING> 27,505
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 27,505
<EPS-PRIMARY> .39
<EPS-DILUTED> .39
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS INCLUDED UNDER ITEM 8 OF THE COMPANY'S FORM
10-K FOR THE FISCAL YEAR ENDED DECEMBER 3, 1994, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-03-1994
<PERIOD-START> NOV-28-1993
<PERIOD-END> DEC-03-1994
<CASH> 0
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 566,461<F1>
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 2,714,153<F1>
<CURRENT-LIABILITIES> 259,189<F1>
<BONDS> 0
<COMMON> 0
0
0
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 2,714,153<F1>
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 0
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 0
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
<FN>
<F1>THE COMPANY RECLASSIFIED THE CURRENT DEFERRED TAX ASSET FROM OTHER CURRENT
LIABILITIES TO OTHER CURRENT ASSETS.
</FN>
</TABLE>
