UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 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 September 30, 1998
or
[ ] 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 0-3041
JUSTIN INDUSTRIES, INC.
-----------------------
(Exact name of registrant as specified in its charter)
TEXAS 75-0102185
------------------------------- --------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2821 West 7th Street 76107
------------------------------- --------------------
(Address of principal (Zip Code)
executive office)
(817) 336-5125
--------------------------------------------------
(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 XX NO ____
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 26,297,037 shares of the
Company's Common Stock ($2.50 par value) were outstanding as of November 11,
1998.
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JUSTIN INDUSTRIES, INC.
Table of Contents
Page No.
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements:
Consolidated Balance Sheet
September 30, 1998 and December 31, 1997 3
Consolidated Statement of Income
Three Months and Nine Months Ended
September 30, 1998 and 1997 4
Consolidated Statement of Shareholders' Equity
Nine Months Ended September 30, 1998 and 1997 4
Consolidated Statement of Cash Flows
Nine Months Ended September 30, 1998 and 1997 5
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
PART II. OTHER INFORMATION 10
Item 1. Legal Proceedings 10
Item 4. Submission of Matters to a Vote of Security Holders 10
Item 6. Exhibits and Reports on Form 8-K 10
SIGNATURE 11
All other schedules and compliance information called for by the instructions to
Form 10-Q have been omitted since the required information is not present or not
present in amounts sufficient to require submission.
Page 2
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
JUSTIN INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEET
<CAPTION>
In Thousands of Dollars
September 30, December 31,
1998 1997
------------- -------------
(Unaudited)
<S> <C> <C>
ASSETS
- ------
Current assets:
Cash $ 6,823 $ 5,113
Accounts receivable, less allowance for doubtful
accounts of $3,670 and $3,097, respectively 77,989 73,153
Inventories:
Finished goods 111,805 105,100
Work-in-process 5,083 6,040
Raw materials 27,179 30,508
--------- ---------
Total inventories 144,067 141,648
Income taxes 5,675 7,946
Prepaid expenses 2,694 2,454
--------- ---------
Total current assets 237,248 230,314
Other assets, at cost 40,345 32,740
Assets held for sale 2,820 2,829
Property, plant, and equipment, at cost:
Land 20,217 20,062
Buildings and equipment 275,336 266,988
Construction-in-progress 9,105 3,000
--------- ---------
304,658 290,050
Less accumulated depreciation 189,648 179,866
--------- ---------
Net property, plant, and equipment 115,010 110,184
--------- ---------
$ 395,423 $ 376,067
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Trade accounts payable $ 14,182 $ 18,412
Other accrued items 41,061 37,505
Current portion of long-term debt 8,000 8,000
--------- ---------
Total current liabilities 63,243 63,917
Long-term debt, less current portion 28,750 23,750
Deferred income taxes 15,394 15,420
Shareholders' equity:
Voting preferred stock, $2.50 par value; 1,000,000
shares authorized - Series Two convertible, 100
shares issued and outstanding - -
Common stock, $2.50 par value; 100,000,000 shares
authorized, 27,869,888 shares issued 69,674 69,674
Capital in excess of par value 15,977 16,040
Retained earnings 219,321 202,645
Treasury stock, at cost, 1,594,548 and 1,490,915
shares, respectively (16,936) (15,379)
--------- ---------
Total shareholders' equity 288,036 272,980
--------- ---------
$ 395,423 $ 376,067
========= =========
<FN>
See notes to consolidated financial statements.
</TABLE>
Page 3
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<TABLE>
JUSTIN INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF INCOME
<CAPTION>
In Thousands of Dollars (Except Per Share Data)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
1998 1997 1998 1997
--------- --------- --------- ---------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Net sales:
Building materials $ 77,648 $ 72,568 $ 218,889 $ 200,726
Footwear 39,344 41,589 120,973 121,923
--------- --------- --------- ---------
116,992 114,157 339,862 322,649
Costs and expenses:
Cost of goods sold 73,818 71,850 215,699 205,219
Selling, general,
and administrative expenses 30,229 30,670 90,299 88,282
Interest expense 485 451 1,374 1,307
--------- --------- --------- ---------
104,532 102,971 307,372 294,808
--------- --------- --------- ---------
Income before income taxes 12,460 11,186 32,490 27,841
Provision for income taxes 4,548 4,083 11,859 10,162
--------- --------- --------- ---------
Net income $ 7,912 $ 7,103 $ 20,631 $ 17,679
========= ========= ========= =========
Earnings per share:
Basic $ .30 $ .27 $ .78 $ .68
======== ========= ========= =========
Diluted $ .30 $ .27 $ .78 $ .66
======== ========= ========= =========
</TABLE>
<TABLE>
JUSTIN INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
Nine Months Ended September 30, 1998 and 1997
<CAPTION>
In Thousands of Dollars (Except Share and Per Share Data)
Capital In
Preferred Common Excess of Retained Treasury
Stock Stock Par Value Earnings Stock
- ----------------------- ---------- ---------- ---------- ---------- ----------
(Unaudited)
<S> <C> <C> <C> <C> <C>
Balance January 1, 1998 $ - $ 69,674 $ 16,040 $ 202,645 $ (15,379)
Net income - - - 20,631 -
Purchase of 154,900 shares
of stock for treasury - - - - (2,077)
Exercise of stock options - - (63) - 520
Cash dividends declared
($.15 per share) - - - (3,955) -
--------- --------- --------- --------- ---------
Balance September 30, 1998 $ - $ 69,674 $ 15,977 $ 219,321 $ (16,936)
========= ========= ========= ========= =========
Balance January 1, 1997 $ - $ 69,674 $ 16,477 $ 181,068 $ (14,363)
Net income - - - 17,679 -
Purchase of 231,700 shares
of stock for treasury - - - - (2,562)
Exercise of stock options - - (323) - 1,339
Cash dividends declared
($.13 per share) - - - (3,429) -
--------- --------- --------- --------- ---------
Balance September 30, 1997 $ - $ 69,674 $ 16,154 $ 195,318 $ (15,586)
========= ========= ========= ========= =========
<FN>
See notes to consolidated financial statements.
</TABLE>
Page 4
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<TABLE>
JUSTIN INDUSTRIES, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
<CAPTION>
In Thousands of Dollars
Nine Months Ended
September 30,
----------------------
1998 1997
----------------------
(Unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income $ 20,631 $ 17,679
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation 13,187 12,515
Amortization 701 539
Provision for losses on accounts receivable 1,133 1,326
Gain on sale of property, plant, and equipment (206) (299)
Deferred federal income tax (26) 8
Changes in assets and liabilities:
(Increase) decrease in accounts receivable (5,409) 137
Increase in inventories (1,874) (13,544)
Decrease in other current assets 2,109 3,455
Increase (decrease) in accounts payable
and accrued expenses (938) 9,373
-------- --------
Net cash provided from operating activities 29,308 31,189
Cash flows from investing activities:
Proceeds from the sale of property, plant,
and equipment 330 375
Capital expenditures (18,137) (17,966)
Increase in other long-term assets (7,078) (516)
Acquisitions, net of cash acquired (2,134) (2,073)
-------- --------
Net cash used in investing activities (27,019) (20,180)
Cash flows from financing activities:
Borrowings 23,000 5,000
Repayment of borrowings (18,000) (10,300)
Dividends paid (3,959) (3,169)
Purchase of treasury stock (2,077) (2,562)
Proceeds from exercise of stock options 457 1,016
-------- --------
Net cash used in financing activities (579) (10,015)
-------- --------
Net increase in cash 1,710 994
Cash at beginning of period 5,113 3,215
-------- --------
Cash at end of period $ 6,823 $ 4,209
======== ========
<FN>
See notes to consolidated financial statements.
</TABLE>
Page 5
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JUSTIN INDUSTRIES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
September 30, 1998
Summary of Significant Accounting Policies
- ------------------------------------------
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
Interim results are not necessarily indicative of results for a full year.
A summary of the company's significant accounting policies is presented on
page 28 of its 1997 Annual Report to Shareholders. Users of financial
information produced for interim periods are encouraged to refer to the
footnotes contained in the Annual Report to Shareholders when reviewing interim
financial results. There has been no material change in the accounting policies
followed by the company during 1998.
In the opinion of management, the accompanying interim financial statements
contain all material adjustments, consisting only of normal recurring
adjustments, necessary to present fairly the consolidated financial position,
results of operations, cash flows, and shareholders' equity of Justin
Industries, Inc. for interim periods.
Long-Term Debt
- --------------
Certain loan agreements contain minimum requirements as to working capital,
cash flow from operations, and tangible net worth, redemption of outstanding
stock, and change in control of the company. As of September 30, 1998, the
company was in compliance with all such requirements and restrictions.
Earnings Per Share
- ------------------
Earnings per share are based on the average number of shares of common stock
outstanding during each period and such shares issuable upon assumed exercise of
stock options, using the treasury stock method, adjusted for stock splits. The
number of shares used in the calculation of diluted earnings per share was
26,617,000 in 1998 and 26,730,000 in 1997.
Subsequent Events and Commitments
- ---------------------------------
Acquisition and Commitment to Construct New Plant - In late October, Acme
entered into an agreement to purchase Texas Clay Industries, a brick
manufacturer near Dallas. This acquisition will add approximately 7% to Acme's
brick production capacity. The transaction is anticipated to be completed by
year-end. Acme also committed to construct a new plant beginning in 1999.
Total commitments for these two projects are approximately $32.5 million.
Footwear Computer System - The Company's Footwear division activated its new
computer systems for order entry, purchasing, manufacturing, accounting, and
warehousing at the beginning of October. A portion of the warehouse systems
that controls barcode scanning devices and certain other warehouse related
functions have not performed as expected. The other portions of the new
computer systems are performing fairly well. Problems in the warehousing
systems have caused a significant slow-down in shipping during October. The
vendors responsible for these systems and company employees are diligently
working on the problems. In addition, Footwear's management is continuing to
review contingency plans and implement workarounds to ensure customers are
provided product as quickly as possible. While management believes that the
problems with the system will be corrected and normal operations will resume, it
is unlikely that the company will make up the entire shipment shortfall by
quarter-end. The cost of remediation cannot be reasonably determined at this
time and depends, in part, on how long it takes to implement corrective actions.
In addition, the impact on revenues and earnings for the fourth quarter are
difficult to project at this time but could be significant.
Page 6
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
RESULTS OF OPERATIONS
Sales - Consolidated net sales for the third quarter of 1998 were $117
million versus $114.2 million for the same quarter in 1997, an increase of 2.5%.
Consolidated net sales for the first nine months of 1998 were $339.9 million
compared to $322.6 million for the nine months ended September 30, 1997, an
increase of 5.3%.
Building Materials Segment Sales - Sales in the Building
Materials segment for 1998's third quarter increased 7.0% to $77.6
million compared to the same quarter of 1997. For the nine months
ended September 30, 1998, net sales increased 9% to $218.9 million
compared to the same period in 1997. Sales for Acme Brick Company
("Acme") grew approximately 8.8% in the third quarter and 10.1% for
the nine-month period of 1998, compared to the same periods a year
ago. Acme's revenue increases are due to increased unit brick sales
as well as higher selling prices. With record quarterly sales and
orders, Acme is on pace to achieve record net sales for the year. A
strong residential housing market has provided the impetus for Acme's
performance. In late October, Acme entered into an agreement to
purchase Texas Clay Industries (Texas Clay), a brick manufacturer near
Dallas. This acquisition will add approximately 7% to Acme's brick
production capacity and further improve its strong position in the
region. The transaction is anticipated to be completed by year-end.
Plans are also in process to build additional production capacity in
order to position Acme for further growth.
Sales at Acme's subsidiary, American Tile Supply Company, were
approximately 2% and 1% behind last year's third quarter and first
nine months, respectively. Intense competition in its market areas
has dampened revenue. However, American Tile is continuing to expand
in its larger markets, opening two new distribution centers during the
third quarter. The new Dallas area location primarily sells marble
and granite slabs, while the other new facility in north Houston
distributes a full line of ceramic and marble tile. Featherlite
Building Products Corporation's sales for the third quarter were down
2.8% and year-to-date were up about 4.4%. The down quarter is
attributable primarily to less construction activity in Featherlite's
El Paso market.
Footwear Segment Sales - Total Footwear sales for the quarter
ended September 30, 1998, were down 5.4% to $39.3 million from 1997's
third quarter of $41.6 million. For the nine-month period ended
September 30, 1998, revenues were only slightly behind the same period
a year ago. Contributions from the Footwear segment fell short of
expectation due to continued softness in western footwear and apparel.
Much of the net sales decline in the western boot business was offset
by growth in non-western products, particularly the Justin Original
Workboot, which continues to increase in popularity. While total unit
shipments of footwear products in 1998's third quarter actually
exceeded the 1997 period, the average selling price declined due to
the reduction in sales of western boots.
Footwear prospects are not expected to improve during the
remainder of 1998, as the western boot industry remains weak. In
addition, the Company's Footwear division activated its new computer
systems for order entry, purchasing, manufacturing, accounting, and
warehousing at the beginning of October. A portion of the warehouse
systems that controls barcode scanning devices and certain other
warehouse related functions have not performed as expected. The other
portions of the new computer systems are performing fairly well.
Problems in the warehousing systems have caused a significant slow-
down in shipping during October. The vendors responsible for these
systems and company employees are diligently working on the problems.
In addition, Footwear's management is continuing to review contingency
plans and implement workarounds to ensure customers are provided
product as quickly as possible. While management believes that the
problems with the system will be corrected and normal operations will
resume, it is unlikely that the company will make up the entire shipment
shortfall by quarter-end. The cost of remediation cannot be reasonably
determined at this time and depends, in part, on how long it takes to
implement corrective actions. In addition, the impact on revenues and
earnings for the fourth quarter are difficult to project at this time
but could be significant.
Page 7
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Costs and Expenses - The consolidated gross profit margin decreased in the
third quarter of 1998 to 36.9% compared to 37.1% in the same quarter of 1997.
For the nine-month periods ended September 30, 1998 and 1997, the gross profit
margins improved slightly from 36.4% in 1997 to 36.5% in 1998.
Building Materials' gross margins improved from 41.7% in 1997's third
quarter to 42.2% in the third quarter of 1998. During the first nine months
of 1998, the ratio for Building Materials improved to 41% from 40.8% for the
same period in 1997. Gains in 1998 are attributable to Acme as brick gross
profit margins improved during the quarter and first nine months due to
volume and selling price. Gross profit margins in the Footwear business were
26.5% for the third quarter and 28.4% for the first nine months of 1998,
versus 29% for the third quarter and 29.2% the first nine months of 1997.
Margins for the third quarter continued to be adversely affected by higher
production costs in the El Paso production facility. Some of these costs
relate to the movement of certain production into this facility in order to
improve overhead costs per unit. Footwear management is initiating various
measures over the next several months to lower production costs and improve
efficiencies.
Selling, general and administrative expenses were reduced to 25.8% of sales
in the third quarter of 1998 compared to 26.9% in the third quarter of 1997.
For the first nine months of 1998, such expenses were 26.6% of sales compared to
27.4% during the first nine months of 1997. Higher sales volumes at Acme and
cost-cutting measures at Footwear accounted for the majority of the
improvements.
Interest expense increased 7.5% in 1998's third quarter to $485,000 from
$451,000 in the same three month period of 1997. During the nine months ended
September 30, 1998, compared to the same period in 1997, interest expense
increased $67,000, or 5.1%. These increases are primarily attributable to
higher debt levels due to expenditures for new facilities and computer systems
in 1998.
Provision for Income Taxes - The Company's provision for income tax was
36.5% of pre-tax income in the third quarter and for the first nine months of
1998 and 1997, which is the current estimated effective rate for the full year.
FINANCIAL CONDITION AND LIQUIDITY
At September 30, 1998, working capital amounted to $174 million versus $166.4
million at December 31, 1997. Cash increased from $5.1 million at year-end 1997
to $6.8 million at the end of 1998's third quarter. During the first nine
months of 1998, net cash of $29.3 million was provided from operations. In
addition, the company's debt levels increased by $5 million during the 1998
nine-month period. Uses of cash during the nine-month period include the
purchase of 154,900 shares of treasury stock at a cost of $2.1 million, purchase
of $18.1 million of capital additions, capitalized costs of about $7 million
related to implementation of new computer systems, and payment of $4 million in
cash dividends to shareholders.
Total interest-bearing debt increased to $36.8 million from $31.8 million at
year-end 1997. The ratio of long-term debt-to-equity was .10 to 1 at September
30, 1998 and 1997. Borrowings may increase during the next quarter due to
capital additions, seasonal increases in Footwear receivables, and higher
inventory levels at Footwear. In addition, during September and October of
1998, Acme committed to purchase Texas Clay in late 1998 and construct another
brick plant beginning in 1999. Firm commitments related to these two projects
amount to approximately $32.5 million. At September 30, 1998, unused credit
facilities were more than $63 million, an amount well above the company's
estimated requirements.
Page 8
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Cash dividends declared in the third quarter of 1998 and 1997 amounted to
$.05 a share. During the nine month period ending September 30, 1998, dividends
were declared amounting to $.15 a share and for the same period ending September
30, 1997, dividends amounted to $.13 a share.
GENERAL DESCRIPTION OF THE YEAR 2000 ISSUE AND THE NATURE AND EFFECTS OF THE
YEAR 2000 ON INFORMATION TECHNOLOGY (IT) AND NON-IT SYSTEMS
The Year 2000 Issue is the result of computer programs being written using
two digits rather than four to define the applicable year. Computer programs or
hardware that have date-sensitive software or embedded chips may recognize a
date using "00" as the year 1900 rather than the year 2000. This could result
in a system failure or miscalculations causing disruptions of normal business
activities.
Based on various assessments during the past two years, the Company
determined that only minor modifications or replacement of portions of its IT
software systems and non-IT systems, such as those used in production, would be
necessary in order to properly utilize dates beyond December 31, 1999. Many of
these changes have already been made. Although the Company anticipates all
remaining modifications or replacements will be completed early in 1999, if such
modifications and replacements were not made, or were not completed timely,
management believes the Year 2000 Issue would still not have a material impact
on the operations of the Company. It is estimated that the Company has spent
less than $300,000 over the past year in modifications or replacements in order
to become compliant. Remaining costs are expected to be insignificant.
The Company is still in the assessment phase in determining Year 2000
compliance of significant customers, vendors, and suppliers (external agents).
The Company expects to complete this assessment early in the first quarter of
1999. To date, the Company is not aware of any external agent with a Year 2000
issue that would materially affect the Company's results of operations,
liquidity, or capital resources. However, the Company has no means of ensuring
that external agents will be Year 2000 ready. The inability of external agents
to complete their Year 2000 resolution process in a timely fashion could
materially impact the Company. The effect of non-compliance by external agents
is not determinable.
SAFE HARBOR PROVISIONS
In accordance with the safe harbor provisions of the securities law regarding
forward-looking statements, except for the historical information contained
herein, this Form 10-Q contains forward-looking statements that involve risks
and uncertainties. Justin's actual results could differ materially from those
discussed herein. Factors that could cause or contribute to such differences
could include, but are not limited to, changes in demand, prices, and raw
materials costs; changes in the economic conditions of the various markets the
Company serves; and changes in the amount and severity of inclement weather; as
well as the other risks detailed herein and in the Company's reports filed with
the Securities and Exchange Commission.
Page 9
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PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The company is not presently involved in any lawsuits seeking damages
relating to the normal conduct of its business that if adversely determined
would have a material effect on the consolidated financial statements.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The information required by this item was provided in the company's Form 10-Q
for the quarter ended June 30, 1998.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
10.1 Amendment No. 2 to Employment Agreement, dated as of December 14,
1994, between Registrant and John S. Justin, Jr.
27 Financial Data Schedule for the period ended September 30, 1998.
(b) Reports on Form 8-K
None.
Page 10
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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.
JUSTIN INDUSTRIES, INC.
/S/ RICHARD J. SAVITZ
Richard J. Savitz
Vice President-Finance/
Chief Financial Officer
Dated this 13th day of November 1998.
Page 11
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Amendment No. 2
to
Employment Contract
The Employment Contract between Justin Industries, Inc. and John S. Justin,
Jr. dated December 14, 1994 ("Contract") is hereby amended as follows:
1. Employee's term of employment under Paragraph 2 of the Contract is
hereby extended to November 30, 1999.
2. The minimum annual Salary to be paid to Employee under Paragraph 2 of
the Contract shall be Six Hundred Twenty Thousand and No/100 Dollars ($620,000).
Except as hereinabove amended, the Contract shall remain in force as
originally written.
Executed this 15th day of September, 1998.
JUSTIN INDUSTRIES, INC.
By: /S/ RICHARD J. SAVITZ
Richard J. Savitz
Vice President
/S/ JOHN S. JUSTIN JR.
John S. Justin, Jr.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
September 30, 1998 financial statements included in the Company's Form 10-Q and
is qualified in its entirety by reference to such Form 10-Q.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> SEP-30-1998
<CASH> 6823
<SECURITIES> 0
<RECEIVABLES> 81659
<ALLOWANCES> 3670
<INVENTORY> 144067
<CURRENT-ASSETS> 237248
<PP&E> 304658
<DEPRECIATION> 189648
<TOTAL-ASSETS> 395423
<CURRENT-LIABILITIES> 63243
<BONDS> 0
0
0
<COMMON> 69674
<OTHER-SE> 218362
<TOTAL-LIABILITY-AND-EQUITY> 395423
<SALES> 339862
<TOTAL-REVENUES> 339862
<CGS> 215699
<TOTAL-COSTS> 215699
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 1133
<INTEREST-EXPENSE> 1374
<INCOME-PRETAX> 32490
<INCOME-TAX> 11859
<INCOME-CONTINUING> 20631
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 20631
<EPS-PRIMARY> .78
<EPS-DILUTED> .78
</TABLE>
