<PAGE>
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
----------------------------------------
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
--- THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended March 31, 1996
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 No. 2-39373
---------------------------------------
The Lincoln Telephone and Telegraph Company
(Exact name of registrant as specified in its charter)
Delaware 47-0223220
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1440 M Street, Lincoln, Nebraska 68508
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 402-474-2211
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 and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
----- -----
Indicate the number of shares outstanding of each of the Registrant's
classes of Common Stock as of the latest practicable date.
Class of Common Stock Outstanding at March 31, 1996
$3.125 par value 1,000 Shares
<PAGE>
PART I - FINANCIAL INFORMATION
THE LINCOLN TELEPHONE AND TELEGRAPH COMPANY
The following financial statements of The Lincoln Telephone and Telegraph
Company (LT&T) have been prepared pursuant to the rules and regulations of
the Securities and Exchange Commission (SEC) and, in the opinion of
management, include all adjustments necessary for a fair statement of income
for each period shown. All such adjustments made are of a normal recurring
nature except when noted as extraordinary or nonrecurring. Certain
information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting
principles have been condensed or omitted pursuant to such SEC rules and
regulations. Management believes that the disclosures made are adequate and
that the information is fairly presented. The results for the interim
periods are not necessarily indicative of the results for the full year.
These financial statements should be read in conjunction with the financial
statements and notes thereto in the 1995 Annual Report on Form 10-K, which
are incorporated by reference.
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<PAGE>
Item 1 - Financial Statements
<TABLE>
THE LINCOLN TELEPHONE AND TELEGRAPH COMPANY
BALANCE SHEETS
Mar. 31, 1996 Dec. 31, 1995
(Unaudited) (Audited)
(Dollars in Thousands)
<CAPTION>
ASSETS
<S> <C> <C>
Current assets $ 54,589 $ 61,216
Property and equipment less accumulated
depreciation and amortization 220,937 222,879
Investments and other assets 461 339
Deferred charges 11,021 9,180
-------- --------
Total assets $287,008 $293,614
======== ========
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Note(s) payable to bank(s) $ -- $ 8,000
Accounts payable and accrued liabilities 55,765 57,242
-------- --------
Total current liabilities 55,765 65,242
-------- --------
Deferred credits and other long-term liabilities 60,742 59,729
-------- --------
Long-term debt 44,000 44,000
-------- --------
Preferred stock, 5%, redeemable 4,499 4,499
-------- --------
Stockholder's equity 122,002 120,144
-------- --------
Total liabilities and stockholder's equity $287,008 $293,614
======== ========
</TABLE>
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<PAGE>
<TABLE>
THE LINCOLN TELEPHONE AND TELEGRAPH COMPANY
STATEMENTS OF EARNINGS *
(UNAUDITED)
Three Months Ended
March 31, 1996 March 31, 1995
(Dollars in Thousands)
<CAPTION>
<S> <C> <C>
Operating revenues:
Telephone revenues:
Local network services $ 18,448 $ 17,514
Access services 14,070 13,197
Long distance services 3,245 3,296
Other wireline communications services 6,216 5,812
------- -------
Total telephone revenues 41,979 39,819
------- -------
Wireless communications services 4,053 3,159
Telephone equipment sales and services 1,738 1,869
------- -------
Total operating revenues 47,770 44,847
------- -------
Operating expenses:
Depreciation 9,103 7,940
Other operating expenses 23,444 22,154
Taxes, other than payroll and income 796 856
------- -------
Total operating expenses 33,343 30,950
------- -------
Operating income 14,427 13,897
------- -------
Non-operating income and expense:
Income from interest and other investments 669 460
Interest expense and other deductions 1,454 1,595
------- -------
Net non-operating expense 785 1,135
------- -------
Income before income taxes 13,642 12,762
Income taxes 5,228 4,909
------- -------
Net income 8,414 7,853
Preferred dividends 56 56
------- -------
Earnings available for common shares $ 8,358 $ 7,797
====== =======
*Certain reclassifications have been made to the historical statements of
earnings to conform to the current presentation.
</TABLE>
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<PAGE>
<TABLE>
THE LINCOLN TELEPHONE AND TELEGRAPH COMPANY
STATEMENTS OF CASH FLOWS
(UNAUDITED)
Three Months Ended
Mar. 31, 1996 Mar. 31, 1995
(Dollars in Thousands)
<CAPTION>
<S> <C> <C>
Cash flows from operating activities:
Net income $ 8,414 $ 7,853
-------- --------
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization 9,111 7,948
Deferred income taxes 1,224 55
Changes in assets and liabilities resulting
from operating activities:
Receivables 3,645 1,473
Other assets (574) 100
Accounts payable and accrued expenses (5,382) 1,185
Other liabilities 3,694 3,554
-------- --------
Total adjustments 11,718 14,315
-------- --------
Net cash provided by operating
activities 20,132 22,168
-------- --------
Cash flows from investing activities:
Expenditures for property and equipment (7,147) (13,220)
Net salvage on retirements (13) (118)
-------- --------
Net capital additions (7,160) (13,338)
Purchases and sales of investments and other
assets, net (123) (347)
Purchases of temporary investments (1,667) (437)
Maturities and sales of temporary investments 2,010 1,660
-------- --------
Net cash used for investing
activities (6,940) (12,462)
-------- --------
Cash flows used for financing activities:
Dividends to stockholders (6,556) (5,556)
Payments on note payable to bank (8,000) (3,000)
-------- --------
Net cash used in financing
activities (14,556) (8,556)
-------- --------
Net increase (decrease) in cash and cash equivalents (1,364) 1,150
Cash and cash equivalents, beginning of year 13,496 17,270
-------- --------
Cash and cash equivalents, end of quarter $12,132 $18,420
======= =======
(Continued on following page)
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<PAGE>
THE LINCOLN TELEPHONE AND TELEGRAPH COMPANY
STATEMENTS OF CASH FLOWS (CONT'D)
(UNAUDITED)
Three Months Ended
Mar. 31, 1996 Mar. 31, 1995
(Dollars in Thousands)
Supplemental disclosure of cash flow information:
Interest paid $ 99 $ 273
======= =======
Income taxes paid $ -- $ 1,393
======= =======
</TABLE>
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<PAGE>
THE LINCOLN TELEPHONE AND TELEGRAPH COMPANY
NOTES TO FINANCIAL STATEMENTS
(1) Business
The Form 10-Q reflects the operations of The Lincoln Telephone and Telegraph
Company (the Company, herein sometimes called LT&T). The Company is a
wholly-owned subsidiary of Lincoln Telecommunications Company. The Company
provides local and long distance telephone service in 22 southeastern
counties of Nebraska. It further provides cellular telecommunications
services in the Lincoln Metropolitan Statistical Area (MSA) (which includes
all of Lancaster County in Nebraska) under the name of Lincoln Telephone
Cellular.
The Telecommunications Act of 1996 was signed into effect in February 1996.
The bill facilitates the entry of new competitors into the local exchange
market by allowing companies to purchase and resell Local Exchange Carrier
(LEC) services, by requiring companies to unbundle their networks, and by
requiring LEC's to negotiate interconnection agreements with companies who
want connection to LEC networks. However, the Telecommunications Act of
1996 also provides opportunities for the Company, such as entry into the
cable television market, and entry into new geographic markets with either
a full range of services or selected services to niche markets.
(2) Prior Year Accounting Changes
Financial Accounting Standard (FAS) No. 71, "Accounting for the Effects of
Certain Types of Regulation," generally applies to regulated companies that
meet certain requirements, including a requirement that a company be able
to recover its costs by charging its customers rates prescribed by
regulators and that competition will not threaten the recovery of those
costs. Having achieved price regulation and recognizing potential
increased competition, the Company concluded, in the fourth quarter of
1995, that the principles prescribed by FAS 71 were no longer appropriate.
As a result, a non-cash, extraordinary charge of $16,516,000, net of an
income tax benefit of $9,352,000, was incurred by the Company in December
1995.
On adoption of FAS 109, "Accounting for Income Taxes," in 1993, adjustments
were required to adjust excess deferred tax levels to the currently enacted
statutory rates as regulatory liabilities and regulatory assets were
recognized on the cumulative amount of tax benefits previously flowed
through to ratepayers. These tax-related regulatory assets and liabilities
were grossed up for the tax effect anticipated when collected at future
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<PAGE>
rates. At the time the application of FAS 71 was discontinued, the tax-
related regulatory assets and regulatory liabilities were eliminated and
the related deferred taxes were adjusted to reflect application of FAS 109
consistent with unregulated entities.
(3) Cellular Activities
The Company's wireless services include cellular operations and wide area
paging services. The Company operates a cellular telecommunications system
in the Lincoln, Nebraska, MSA, and manages the limited partnership which is
the license holder for Iowa Rural Statistical Area (RSA) 1 which serves the
southwestern six counties of Iowa. In recent years, the Company has expanded
its wireless operations considerably. The Company also sells cellular
equipment.
The proportionate data summarized below reflects the Company's managed
cellular operations.
Supplemental Proportionate Data for Cellular Properties
First Quarter
(dollars in thousands)
Lincoln MSA Iowa RSA 1
Acquisition Date (1) April 23, 1987 June 30, 1989
Percent Ownership 100.0 11.8 (2)
POPs 1996 221,000 7,198
1995 221,000 7,198
1994 221,000 7,316
Customer Lines 1996 31,506 361
1995 22,469 254
1994 14,680 155
(1) The date the Company's operating license was granted in
the case of the Lincoln MSA, and the date of the Company's
initial acquisition of an interest in Iowa RSA 1.
(2) The Company has an 11.8% ownership interest in Iowa RSA 1.
The Company performs management services under a contract
with Iowa RSA 1.
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<PAGE>
(4) Restructuring Charges and Work Force Reduction
In 1995, the Company reduced its operator service work force from 140 to
approximately 50 employees. The current work force handles the Company's
long distance operator service needs. The Company offered retirement and
separation incentives along with out-placement services to those employees
affected by the work force adjustment. These actions resulted in a pre-tax
non-recurring charge of $1,555,000 or $937,000 after the income tax effect,
reducing 1995 earnings per share by $0.03. Savings resulting from new
procedures are expected to offset this non-recurring charge within two
years.
In addition, in November 1995, the Company announced its plans to reduce
its existing work force by offering a voluntary early retirement program to
eligible employees. The eligible employees are both management and non-
management employees who are employed by the Company. The Company
implemented an enhancement to the Company's pension plan by adding five
years to both the age and net credited service for eligible employees. The
program also provides for the employees to receive a lump-sum payment and a
supplemental monthly income payment in addition to their normal pension.
As a result of 319 employees accepting this voluntary early retirement
offer, the Company recorded a reduction to its pension asset and recognized
a restructuring charge of $19.7 million at December 31, 1995.
(5) Income Taxes
Total income tax expense for the three-month periods ended March 31, 1996
and 1995 was $5,228,000 and $4,909,000, respectively, and was comprised
solely of income taxes on income from continuing operations. Income tax
expense (benefit) attributable to income from continuing operations for the
three-month periods ended March 31, 1996 and 1995 consists of the following:
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<PAGE>
Three Months Ended March 31,
1996 1995
------------ ------------
Current
U.S. Federal $ 3,756,000 $ 4,175,000
State and local 876,000 932,000
------------ ------------
Total current tax expense 4,632,000 5,107,000
Deferred
U.S. Federal 676,000 (5,000)
State and local 111,000 91,000
------------ ------------
Total deferred tax expense 787,000 86,000
Investment tax credits (191,000) (284,000)
------------ ------------
Total income tax expense $ 5,228,000 $ 4,909,000
============ ============
Income tax expense differed from the amounts computed by applying the U. S.
Federal income tax rate of 35 percent to pretax income from continuing
operations as stated in the following:
Three Months Ended March 31,
1996 1995
------------ -------------
Computed "expected" tax
expense $ 4,775,000 $ 4,467,000
Increase (reduction) in
income taxes resulting from:
State and local taxes, net
of Federal tax benefit 641,000 665,000
Non-taxable interest income (53,000) (28,000)
Amortization of regulatory
deferred charges 0 479,000
Amortization of regulatory
deferred liabilities 0 (448,000)
Amortization of investment
tax credits (191,000) (284,000)
Other, net 56,000 58,000
------------ ------------
Total income tax expense $ 5,228,000 $ 4,909,000
============ ============
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<PAGE>
The significant components of deferred income tax expense attributable to
income from continuing operations for the three-month periods ended March
31, 1996 and 1995 were the following:
Three Months Ended March 31,
1996 1995
------------ -------------
Deferred tax expense $ 787,000 $ 55,000
Amortization of regulatory
deferred charges 0 479,000
Amortization of regulatory
deferred liabilities 0 (448,000)
----------- ------------
Total deferred tax expense $ 787,000 $ 86,000
========== ==========
The tax effects of temporary differences that give rise to significant
portions of the deferred tax assets and deferred tax liabilities at March
31, 1996 and December 31, 1995 are presented in the following:
March 31, 1996 December 31, 1995
-------------- -----------------
Deferred tax assets:
Accumulated post-retirement
benefit cost $17,723,000 $17,493,000
Voluntary Early Retirement
Program 6,974,000 7,697,000
Other 2,078,000 2,686,000
------------- -------------
Total gross deferred tax
assets 26,775,000 27,876,000
Less valuation allowance -- --
------------- -------------
Net deferred tax assets $26,775,000 $27,876,000
============= =============
Deferred tax liabilities:
Plant and equipment,
principally due to
depreciation differences $31,351,000 $30,820,000
Other 1,416,000 1,825,000
-------------- -------------
Total gross deferred tax
liabilities 32,767,000 32,645,000
-------------- -------------
Net deferred tax
liabilities $ 5,992,000 $ 4,769,000
============= =============
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<PAGE>
As a result of the nature and amount of the temporary differences which give
rise to the gross deferred tax liabilities and the Company's expected
taxable income in future years, no valuation allowance for deferred tax
assets is expected for 1996.
(6) Postretirement Benefits
In addition to the Company's defined benefit pension plan, the Company
sponsors a health care plan (Plan) that provides postretirement medical and
other benefits to employees who meet minimum age and service requirements
upon retirement.
The following table presents the Plan's status reconciled with amounts
recognized in the Company's balance sheet at December 31, 1995:
Accumulated Postretirement Benefit Obligation:
Retirees $29,520,000
Active plan participants - fully eligible 11,551,000
Active plan participants - other 9,663,000
------------
50,734,000
Unrecognized prior service cost (1,633,000)
Unrecognized net loss (5,666,000)
------------
Accrued postretirement benefit costs $43,435,000
============
For purposes of measuring the benefit obligation, a discount rate of 8.0%
and an 11.3% annual rate of increase in the per capita cost of covered
benefits (i.e., health care cost trend rate) was assumed for 1995. The
projected rates for 1996 are 8.0% and 11.3%, respectively. The health care
cost trend rate of increase was assumed to decrease gradually to 5.5% by the
year 2004.
The Company has not designated any assets to fund Plan obligations. Net
periodic postretirement benefit costs for the three-month periods ended
March 31, 1996 and 1995 include the following components:
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<PAGE>
Three Months Ended March 31,
1996 1995
------------ -------------
Service cost $ 115,000 $ 89,000
Interest cost 990,000 965,000
Unrecognized prior service cost 27,000 3,000
Amortization of unrecognized loss 8,000 49,000
------------- ------------
Net periodic postretirement
benefit costs $ 1,140,000 $ 1,106,000
------------- -------------
For purposes of measuring the benefit cost, a discount rate of 8.0% and an
11.7% annual rate of increase in the health care cost trend rate was assumed
for 1996, 8.0% and 11.7% for 1995. This health care cost trend rate of
increase was assumed to decrease gradually to 5.5% by the year 2004. The
health care cost trend rate assumptions have a significant effect on the
amounts reported.
(7) Temporary Investments
The Company applies the provisions of Statement of Financial Accounting
Standards (FAS) No. 115, "Accounting for Certain Investments in Debt and
Equity Securities."
FAS No. 115 requires fair value reporting for certain investments in debt
and equity securities. Pursuant to FAS No. 115, the Company has classified
all of its investments as "available for sale" at March 31, 1996 and 1995.
This information is summarized as follows:
March 31, 1996
--------------------------------------------
Estimated
Amortized Gross Unrealized Market
Cost Gains Losses Value
--------- ----- ---------- ---------
Equity Securities $ 1,222,000 44,000 (33,000) 1,233,000
U.S. Government
obligations 1,413,000 1,000 (31,000) 1,383,000
U.S. Government agency
obligations 5,684,000 79,000 (100,000) 5,663,000
Corporate debt
securities 2,846,000 11,000 (150,000) 2,707,000
----------- ------- --------- ----------
$11,165,000 135,000 (314,000) 10,986,000
=========== ======= ========= ===========
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<PAGE>
March 31, 1995
--------------------------------------------
Estimated
Amortized Gross Unrealized Market
Cost Gains Losses Value
--------- ----- ---------- ---------
Equity Securities $ 1,275,000 1,000 (61,000) 1,215,000
U.S. Government
obligations 507,000 -- (48,000) 459,000
U.S. Government agency
obligations 8,451,000 94,000 (125,000) 8,420,000
Corporate debt
securities 8,706,000 44,000 (421,000) 8,329,000
----------- ------- --------- ----------
$18,939,000 139,000 (655,000) 18,423,000
=========== ======= ========= ===========
The net unrealized loss on investments available for sale is not reported
separately as a component of stockholders' equity due to its insignificance
to the balance sheet at March 31, 1996 and 1995.
The amortized cost and estimated market value of debt securities at March
31, 1996 and 1995, by contractual maturity, are shown in the following
table. Expected maturities will differ from the contractual maturities
because borrowers may have the right to call or prepay obligations with or
without call or prepayment penalties.
March 31, 1996
-------------------------
Estimated
Amortized Market
Cost Value
--------- ---------
Due after three months through
five years $ 7,811,000 $ 7,687,000
Due after five years through
ten years 2,132,000 2,066,000
----------- -----------
$ 9,943,000 $ 9,753,000
=========== ===========
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<PAGE>
March 31, 1995
-------------------------
Estimated
Amortized Market
Cost Value
--------- ---------
Due after three months through
five years $15,230,000 $15,090,000
Due after five years through
ten years 2,434,000 2,118,000
----------- -----------
$17,664,000 $17,208,000
=========== ===========
The gross realized gains and losses on the sale of securities were
insignificant to the financial statements for the quarters ended March 31,
1996 and 1995. The Company does not invest in securities classified as held
to maturity or traded securities.
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<PAGE>
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations
Liquidity and Capital Resources
Total capital additions to telephone plant for 1996 are projected to be
$42,575,000. During the three-month periods ended March 31, 1996 and 1995,
cash provided by operating activities, less dividends paid, exceeded capital
additions.
No long-term borrowings are anticipated for the balance of 1996.
Results of Operations
Revenues
First Quarter 1996
Increase (Decrease)
Over First
Quarter 1995
-------------------
Operating revenues:
Telephone revenues:
Local network services 5.3%
Access services 6.6%
Long distance services (1.5%)
Other wireline communications
services 6.9%
Total telephone revenues 5.4%
Wireless communications services 28.3%
Telephone equipment sales
and services (7.0%)
Total operating revenues 6.5%
All comparisons hereinafter made are of the first quarter for 1996 with the
same period in 1995. The adjustments included are all of a normal recurring
nature except when noted as extraordinary or nonrecurring.
Local network services revenue increased $934,000 (5.3%). Basic local
services revenue increased $620,000 (4.9%) led by strong growth in small
business, PBX and residence services revenue for the three-month period.
Landline access lines in service grew by 7,532 (3.0%) from March 31, 1995.
Expanded area services revenue increased $282,000 (15.9%) due to increased
usage.
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<PAGE>
Access services revenue increased $873,000 (6.6%). Overall minutes of use
increased 8.7%.
Other wireline communications services, consisting of directory advertising
and sales carrier billing and collections, data communications, and
miscellaneous items, increased $404,000 (6.9%).
Wireless communications services revenues increased $894,000 (28.3%) for the
first quarter when compared to 1995, and the number of cellular customers
increased 9,037 (40.2%).
Total operating revenues increased $2,923,000 (6.5%) for the three-month
period ended March 31, 1996 over the same period in 1995.
Operating Expenses
First Quarter 1996
Increase (Decrease)
Over First
Quarter 1995
-------------------
Depreciation 14.6%
Other operating expenses 5.8%
Taxes, other than payroll
and income (7.0%)
Total operating expenses 7.7%
All comparisons hereinafter made are of the first quarter for 1996 with the
same period in 1995. The adjustments included are all of a normal recurring
nature except when noted as extraordinary or nonrecurring.
Depreciation increased $1,163,000 (14.6%) for the three-month period ended
March 31, 1996 over the same period in 1995. As a result of discontinuance
of FAS 71 in December 1995, depreciation expense for the Company is now
based on estimated economic useful lives rather than those prescribed by
regulatory commissions, causing an increase in depreciation of $668,000.
Total operating expenses increased $2,393,000 (7.7%) for the three-month
period.
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<PAGE>
Non-Operating Income (Expense)
First Quarter 1996
Increase (Decrease)
Over First
Quarter 1995
-------------------
Income from interest and
other investments 45.4%
Interest expense and other
deductions (8.8%)
Net non-operating expenses (30.8%)
Income from interest and other investments increased $209,000 (45.4%).
This was due to two factors: 1) a gain of $287,000 was recognized on the
sale of some long-held common stock; and (2) other investments were used to
pay off notes payable, causing a decrease in income from that source.
Interest expense and other deductions decreased slightly $141,000 (8.8%) for
the first quarter when compared to 1995.
Income Taxes
Income taxes increased $319,000 (6.5%) for the three-month period over the
same period in 1995. The increase is primarily due to increased income.
For a detailed explanation of the increase, see the first table under Item
I, Part (5), Income Taxes.
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<PAGE>
PART II - OTHER INFORMATION
Item 1-4 - Not applicable
Item 5 - Labor Agreements
New three-year agreements between LT&T and the Communications
Workers of America (CWA) became effective on October 16, 1995.
The agreement included a general wage increase of 10.9% over
the three-year period ending October 15, 1998.
Item 6 - a) Not applicable
b) During the quarter ended March 31, 1996, the
Registrant did not file a Form 8-K.
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<PAGE>
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.
The Lincoln Telephone and Telegraph Company
(Registrant)
May 15, 1996
Date..................... ......................................
(Signature)
Robert L. Tyler, Senior Vice President-
Chief Financial Officer
May 15, 1996
Date..................... ......................................
(Signature)
Michael J. Tavlin, Vice President-
Treasurer
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<PAGE>
Form 10-Q
Exhibit Index
Exhibit Title Page No.
27 Financial Data Schedule
-20-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000059584
<NAME> LINCOLN TELEPHONE & TELEGRAPH COMPANY
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-END> MAR-31-1996
<CASH> 12132
<SECURITIES> 11014
<RECEIVABLES> 26390
<ALLOWANCES> 157
<INVENTORY> 4689
<CURRENT-ASSETS> 54397
<PP&E> 482566
<DEPRECIATION> 261629
<TOTAL-ASSETS> 286926
<CURRENT-LIABILITIES> 55765
<BONDS> 44000
<COMMON> 3
0
4499
<OTHER-SE> 121999
<TOTAL-LIABILITY-AND-EQUITY> 286926
<SALES> 1738
<TOTAL-REVENUES> 46484
<CGS> 829
<TOTAL-COSTS> 34112
<OTHER-EXPENSES> 920
<LOSS-PROVISION> 2
<INTEREST-EXPENSE> 1589
<INCOME-PRETAX> 11452
<INCOME-TAX> 5095
<INCOME-CONTINUING> 6357
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6301
<EPS-PRIMARY> 6.301
<EPS-DILUTED> 6.301
</TABLE>
