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 period ended June 30, 1996
Commission File Number 0-10763
ATRION Corporation
(Exact Name of Registrant as Specified in its Charter)
Alabama 63-0821819
State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
Post Office Box 918, Florence, Alabama 35631
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (205) 383-3631
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.
Outstanding at
Class June 30, 1996
Common Stock, Par Value
$0.10 per share 2,120,084 Shares
<TABLE>
PART I - FINANCIAL INFORMATION
ATRION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
1996 1995 1996 1995
(in thousands, except per share amounts)
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Industrial sales $ 18,505 $ 8,732 $ 44,001 $ 17,618
Resale sales 2,780 1,948 9,526 5,654
Transportation 2,610 2,481 6,110 5,774
Off-system sales and other 715 939 3,221 4,315
Medical and health care prod. 4,979 2,249 8,053 5,462
TOTAL OPERATING REVENUES 29,589 16,349 70,911 38,823
COST OF GOODS SOLD 24,319 12,510 59,724 30,130
GROSS MARGIN 5,270 3,839 11,187 8,693
OTHER OPERATING EXPENSES:
Operations 2,602 1,547 5,052 3,646
Maintenance 62 66 95 126
Depreciation and amort. 360 300 675 600
Other taxes 91 96 187 190
3,115 2,009 6,009 4,562
OPERATING INCOME 2,155 1,830 5,178 4,131
OTHER INCOME:
Interest and investment inc. 84 127 184 238
Other income 129 64 319 110
213 191 503 348
INTEREST EXPENSE 99 42 125 100
INCOME BEFORE TAXES 2,269 1,979 5,556 4,379
INCOME TAXES 822 718 2,010 1,587
NET INCOME $ 1,447 $ 1,261 $ 3,546 $ 2,792
EARNINGS PER SHARE $ 0.68 $ 0.60 $ 1.67 $ 1.32
DIVIDENDS PER SHARE $ 0.30 $ 0.30 $ 0.60 $ 0.60
AVERAGE SHARES OUTSTANDING 2,120,084 2,115,948 2,120,004 2,115,717
The accompanying notes to consolidated financial statements are an
integral part of these statements.
ATRION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<CAPTION>
ASSETS
June 30, December 31
1996 1995
(In thousands)
<S> <C> <C>
CURRENT ASSETS:
Cash and temporary cash investments $ 3,318 $ 2,811
Accounts receivable, including $269,000
in 1996 and $1,860,000
in 1995 of take-or-pay settlement costs 12,736 13,890
Materials and supplies 524 689
Inventories 3,772 717
Prepaid expenses and other 682 288
21,032 18,395
PROPERTY, PLANT AND EQUIPMENT:
Original cost 41,420 35,447
Less - accumulated depreciation and amortization 16,187 15,725
25,233 19,722
DEFERRED CHARGES:
Patents 5,285 5,505
Goodwill 6,258 2,652
Other 1,986 2,232
13,529 10,389
$ 59,794 $ 48,506
The accompanying notes to consolidated financial statements are an
integral part of these statements.
ATRION CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
<CAPTION>
SHAREHOLDERS' EQUITY AND LIABILITIES
June 30, December 31
1996 1995
(In thousands)
<S> <C> <C>
CURRENT LIABILITIES:
Current maturities of long-term debt $ 203 $ 203
Accounts payable 11,544 12,646
Accrued income and other taxes 543 537
Accrued interest 16 0
12,306 13,386
LONG-TERM DEBT, LESS CURRENT MATURITIES 11,540 1,609
OTHER LIABILITIES AND DEFERRED CREDITS:
Accumulated deferred income taxes 1,809 1,559
Unamortized investment tax credits 232 243
Other 1,645 1,739
3,686 3,541
COMMON SHAREHOLDERS' EQUITY
Common shares, par value $0.10 per share; authorized
10,000,000 shares, issued 2,280,000 shares 228 228
Paid-in capital 6,084 6,078
Retained earnings 27,799 25,525
Treasury shares, at cost (1,849) (1,861)
32,262 29,970
$ 59,794 $ 48,506
The accompanying notes to consolidated financial statements are an
integral part of these statements.
ATRION CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Six Months Ended
June 30,
1996 1995
(In thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 3,546 $ 2,792
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,160 906
Deferred income taxes 245 68
Take-or-pay recoveries (net of expenditures) 1,565 1,232
Other (418) (397)
6,098 4,601
Change in current assets and liabilities:
(Increase) in accounts receivable 1,720 1,431
(Increase) decrease in other current assets (271) 84
(Decrease) in accounts payable (2,563) (776)
Increase in other current liabilities 21 27
5,005 5,367
CASH FLOWS FROM INVESTING ACTIVITIES:
Property, plant and equipment additions (1,487) (383)
Acquisition of Halkey-Roberts Corporation (11,650)
(13,137) (383)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase ( decrease) in long-term indebtedness 9,894 (971)
Issuance (repurchase) of common shares 17 (5)
Cash dividends paid (1,272) (1,270)
8,639 (2,246)
Net increase in cash and temporary cash investments 507 2,738
Cash and temporary cash investments,
beginning of period 2,811 440
Cash and temporary cash investments, end of period $ 3,318 $ 3,178
Cash paid for:
Interest (net of capitalized amounts) $ 110 $ 88
Income taxes (net of refunds) 1,844 1,219
The accompanying notes to consolidated financial statements are an
integral part of these statements.
</TABLE>
ATRION CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Basis of Presentation
In the opinion of management, all adjustments necessary
for a fair presentation of results of operations for the
periods presented have been included in the accompanying
unaudited consolidated financial statements of ATRION
Corporation (the Company). Such adjustments consist of
normal recurring items. The accompanying financial
statements have been prepared in accordance with the
instructions to Form 10-Q and include only the
information and notes required by such instructions.
Accordingly, the consolidated financial statements and
notes thereto should be read in conjunction with the
financial statements and notes included in the Company's
1995 Annual Report on Form 10-K.
Because of the seasonal nature of certain of the
Company's operations, among other factors, the results of
operations for the periods presented are not necessarily
indicative of the results which will be achieved for an
entire year.
2. Change of Corporate Name
On May 6, 1996, the Articles of Incorporation of AlaTenn
Resources, Inc. were amended, changing its name to ATRION
Corporation. All references to the Company subsequent to
May 6, 1996 will utilize the new name of ATRION
Corporation.
3. Purchase of Halkey-Roberts Corporation
On May 21, 1996, the Company purchased all the
outstanding capital stock of HRC Acquisition Holding
Corp., a Delaware corporation which, in turn, owns all of
the outstanding capital stock of Halkey-Roberts
Corporation, a Florida corporation (Halkey-Roberts),
pursuant to the terms of a Stock Purchase Agreement,
dated the same date between ATRION Corporation and Fenway
Holdings, L.L.C.
The Company paid Fenway a total of $11,650,000 in cash
under the Stock Purchase Agreement, of which $10,000,000
was borrowed under an existing revolving credit facility
with Compass Bank and $1,650,000 was obtained from the
Company's general corporate funds. The excess of cost
over tangible assets acquired of $1.9 million was
allocated to goodwill. Goodwill will be amortized over
its estimated useful life which approximates 25 years.
Halkey-Roberts designs, manufactures and markets
proprietary valves and pneumatic systems used in the
medical and health care, inflation and container
industries.
The following table presents selected financial data on
a pro forma basis assuming the purchase of Halkey-Roberts
had occurred as of January 1, 1995. The pro forma data
reflect estimated asset, liability, revenue and expense
values of Halkey-Roberts and other assumptions which are
based on estimates and subject to revision. The pro
forma combined results presented are not necessarily
indicative of actual results that would have been
achieved had the acquisition occurred at the beginning of
the periods presented, or of future results.
Three Months Ended
June 30,
1996 1995
Operating Revenues (000) $31,777 $20,194
Net Income (000) $1,549 $1,355
Net Income Per Share $0.73 $0.64
Six Months Ended
June 30,
1996 1995
Operating Revenues (000 $76,975 $46,479
Net Income (000) $3,788 $2,916
Net Income Per Share $1.79 $1.38
For further information regarding the acquisition of
Halkey-Roberts, refer to the Company's 8-K Report, filed
with the Securities and Exchange Commission on June 5,
1996.
ATRION CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results For The Three Months Ended June 30, 1996
The Company's consolidated net income for the quarter
ended June 30, 1996 was $1,447,000 or $.68 per share
compared with $1,261,000 or $.60 per share for the second
quarter of 1995. The earnings per share computations are
based on shares outstanding of 2,120,084 in 1996 and
2,115,948 in 1995.
Consolidated revenues of $29.6 million for the second
quarter of 1996 were 81% higher than revenues of $16.3
million for the second quarter of 1995. The increase in
revenues in the second quarter of 1996, compared to the
same period in the prior year, occurred primarily at the
Company's natural gas marketing subsidiary. This
increase between periods resulted primarily from
significant volume and price increases related to colder
weather. Sales volumes by this unit increased by 40%
above volumes for the second quarter of 1995. Due to
increased demands for natural gas which were due to the
colder weather, natural gas prices increased by 47%
compared to the prior year period. Also, during the
second quarter of 1996, Halkey-Roberts contributed $1.7
million, or 10%, of this increase in revenues between
periods. (See Note 3 of Notes to Consolidated Financial
Statements).
Gross margin of $5.3 million in the second quarter of
1996 was $1.4 million or 37% higher than that in the
comparable period in 1995. The increase in gross margin
occurred in both the pipeline and energy segment and the
medical and health care products segment. The increase
in margins in the pipeline and energy segment was the
result of the start-up of a gaseous oxygen pipeline which
was operational during the second quarter as well as
increased transportation revenues due to a major
industrial customer increasing its natural gas usage
because of equipment failures which reduced its ability
to use alternate fuels. Margins in the medical and
health care products segment increased as a result of the
acquisition of Halkey-Roberts as well as higher margins
related to higher sales at Ryder International
Corporation, the Company's other primary medical and
health care products subsidiary.
The cost of goods sold of $24.3 million for the second
quarter of 1996, a 94% increase from the same period in
1995, was consistent with the changes in revenues in the
pipeline and energy segment related to volume and price
referred to above as well as to the acquisition of
Halkey-Roberts.
The Company's operations and maintenance expenses of $2.7
million for the second quarter of 1996 were $1.0 million
higher than in the second quarter of 1995. This increase
was primarily attributable to operating costs at Halkey-Roberts
as well as costs at the Company's medical devices
marketing unit, formed in late 1995 to market and
distribute a newly developed line of products, called
LacriCATH , to be used in a patented ophthalmic surgical
procedure for treating excessive tearing of the eye.
Depreciation and amortization expense of $.4 million for
the second quarter of 1996 was comparable to that for the
same period in the prior year.
Interest and other income of $213,000 in the second
quarter of 1996 increased $22,000 compared to the second
quarter of 1995. The increase was attributable to income
from a one-time project that was substantially offset by
a reduction in interest income between years due to the
use of corporate funds for the acquisition of Halkey-Roberts
and by lower interest income on the take-or-pay
receivable at the Company's interstate pipeline
subsidiary.
Interest expense of $99,000 in the second quarter of 1996
was $57,000 higher than in the comparable prior-year
period due to an increase in debt related to the
acquisition of Halkey-Roberts.
Income taxes in the second quarter of 1996 were $104,000
greater than in the comparable period in the prior year
due to the increase in income in the current period.
Results For The Six Months Ended June 30, 1996
The Company's consolidated net income for the six months
ended June 30, 1996 was $3,546,000 or $1.67 per share
compared with $2,792,000 or $1.32 per share for the first
six months of 1995. The earnings per share computations
are based on shares outstanding of 2,120,004 in 1996 and
2,115,717 in 1995.
Consolidated revenues of $70.9 million for the first six
months of 1996 were 83% higher than revenues of $38.8
million for the first six months of 1995. The increase
in year-to-date revenues compared to the same period in
the prior year occurred primarily at the Company's
natural gas marketing subsidiary. This increase between
periods resulted primarily from significant volume and
price increases related to colder weather. Sales volumes
by this unit increased by 32% above volumes for the same
six-month period of 1995 and natural gas prices increased
by 69% compared to the prior-year period.
Gross margin of $11.2 million for the first six months
of 1996 was $2.5 million or 29% higher than in the
comparable period in 1995. The increase in gross margin
occurred in both the pipeline and energy segment and the
medical and health care products segment. The increase
in margins in the pipeline and energy segment was the
result of colder weather, increased transportation
revenues to a major industrial customer which increased
its natural gas usage because of equipment failures and
due to the start-up of a gaseous oxygen pipeline which
was operational during the second quarter of 1996.
Margins in the medical and health care products segment
increased as a result of the acquisition of Halkey-Roberts
as well as higher margins at Ryder International
Corporation, the Company's other primary medical and
health care products subsidiary.
The cost of goods sold of $59.7 million for the first six
months of of 1996 represented a 98% increase from the
same period in 1995 and was consistent with the changes
in revenues in the pipeline and energy segment related to
volume and price referred to above as well as to the
acquisition of Halkey-Roberts.
The Company's operations and maintenance expenses of $5.1
million for the first six months of 1996 were $1.4
million higher than in the same period of 1995. This
increase was primarily attributable to operating costs at
Halkey-Roberts, acquired by the Company in May 1996, as
well as operating costs at the Company's medical devices
marketing unit.
Depreciation and amortization expense of $.7 million for
the first half of 1996 was comparable to that for the
same period in the prior year.
Interest and other income of $503,000 for the first six
months of 1996 increased $155,000 compared to the first
six months of 1995. The increase was attributable to
income from the sale of substantially all of the assets
of a small natural gas distribution subsidiary and income
from a one-time project partially offset by a reduction
in interest income between years. The decline in
interest income was due to the use of corporate funds for
the acquisition of Halkey-Roberts and by lower interest
income on the take-or-pay receivable at the Company's
interstate pipeline subsidiary.
Interest expense of $125,000 for the first six months of
1996 was $25,000 higher than in the comparable prior year
period due to an increase in debt related to the
acquisition of Halkey-Roberts.
Income taxes in the first six months of 1996 were
$423,000 greater than in the comparable period in the
prior year due to the increase in income in the current
year period.
Liquidity and Capital Resources
At June 30, 1996, the Company had borrowings of $10.0
million, related to the acquisition of Halkey-Roberts,
under its $20.0 million revolving loan facilities with a
regional bank and had other long-term debt, including
current maturities, of $1.7 million which was related to
the 1994 acquisition of a medical and health care
products unit. The Company's total debt as a percent of
total capitalization at June 30, 1996 was 27%.
At June 30, 1996, the Company had cash and temporary cash
investments of $3.3 million compared with $2.8 million at
December 31, 1995. This increase was attributable to an
increase in cash flows from operations and collections
of receivables of take-or-pay costs by the Company's
interstate pipeline subsidiary from its customers offset
by funds used in the acquisition of Halkey-Roberts,
capital expenditures primarily related to the
construction of a gaseous oxygen pipeline (see Regulatory
and Other Matters) and the payment of dividends.
The Company believes that existing cash and temporary
cash investments, cash flows from operations, cash
recoveries of take-or-pay costs by the Company's
interstate pipeline subsidiary from its customers,
borrowings available under the Company's revolving loan
agreement and other equity or debt financing, which the
Company believes would be available, will be sufficient
to fund operations, potential projects and budgeted
capital expenditures over the next two years.
Regulatory and Other Matters
As has been previously reported, the cities of Decatur
and Huntsville, Alabama, which are municipal customers of
the Company's interstate pipeline subsidiary (Alabama-Tennessee),
entered into 20-year contracts in late 1995
and early 1996 with Southern Natural Gas Company
(Southern), a wholly owned subsidiary of Sonat, Inc., for
Southern to provide substantially all of the cities' firm
natural gas transportation requirements, beginning in
late 1997. Service by Southern under the contracts is
dependent upon Southern's construction of a new 118-mile
pipeline from Tuscaloosa County, Alabama to northern
Alabama. In January 1996, Southern filed an application
with the Federal Energy Regulatory Commission (FERC) to
build the new pipeline. On July 31, 1996, FERC issued an
order in which it made a preliminary determination that
issuance of a certificate of public convenience and
necessity was in the public's interest, subject to
further consideration of environmental issues.
Alabama-Tennessee intends to seek rehearing of this order at FERC
and otherwise continue to oppose at FERC the construction
of the pipeline.
Decatur and Huntsville account for 47% of Alabama-Tennessee's
current total contracted demand. If
Southern's proposed pipeline is constructed and Southern
begins providing service to the cities of Decatur and
Huntsville, the Company's management believes that the
adverse impact of the reduction in gross margins in 1998
and thereafter attributable to the expiration of the
contracts with Decatur and Huntsville would be partially
offset by Alabama-Tennessee's reduction of operating
costs, and could be further reduced by the addition of
new municipal and industrial customers and increases in
contract demand by existing municipal and industrial
customers. ATRION's management currently believes that
even with the lower costs and the replacement of some
part of the expiring firm transportation contracts with
Decatur and Huntsville, Alabama-Tennessee would operate
at a break-even level or incur operating losses for some
period of time after April 1, 1998. For the twelve
months ended June 30, 1996, these firm contracts with
Decatur and Huntsville represented 14% or $2,700,000 of
ATRION's gross margin, or $1,700,000, or $.82 per share,
of ATRION's net income. However, ATRION's management
currently believes that with the favorable impact of
lower costs and the replacement of a portion of the
expiring contracts the adverse impact on the Company's
annual net income from the loss of these contracts,
beginning in 1998, could be reduced from $1,700,000 or
$.82 per share to approximately $750,000 or $.35 per
share if Alabama-Tennessee is operating at break even.
If Alabama-Tennessee does not achieve break even, but
incurs operating losses, the adverse impact on ATRION's
annual net income could be greater than $.35 per share.
Southern has announced that it is planning for the new
pipeline to be placed in service by late 1997. This
startup date depends on Southern's receipt of a final
certificate of public convenience and necessity from the
FERC and its ability to obtain various other required
permits and to construct the 118-mile pipeline over the
next approximately 15 months. In addition to opposing
Southern's application at the FERC, on February 9, 1996,
Alabama-Tennessee filed a lawsuit in state court in
Alabama against Southern and the City of Huntsville
asserting that the firm transportation contract between
Southern and Huntsville violates Alabama's competitive
bid law and requesting that the contract be declared
void.
In the meantime, Alabama-Tennessee continues to maintain
firm transportation contracts with both cities. Current
contracts with Decatur for approximately 93% of that
municipality's contract volume expire on November 1, 1997
with the remaining due to expire on November 1, 2000.
Current contracts with Huntsville for approximately 86%
of that municipality's contract volume expire on April 1,
1998 with the balance also expiring on November 1, 2000.
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
For information regarding certain litigation filed during
the first quarter of 1996, see Item 1 of Part II of the
Company's Form 10-Q for the period ended March 31, 1996.
There were no material developments in such litigation
during the second quarter of 1996.
For information regarding Alabama-Tennessee Natural Gas
Company's intervention in a proceeding before the FERC
related to Southern's application for a certificate of
public convenience and necessity, see the section
entitled "Regulatory and Other" in Part I, Management's
Discussion and Analysis of Financial Condition and
Results of Operations.
There were no other material pending legal proceedings to
which the Company or any of its subsidiaries was a party,
or of which any of their property was the subject, as of
June 30, 1996.
Item 2. Changes in Securities.
None.
Item 3. Defaults Upon Senior Securities.
None.
Item 4. Submission of Matters to a Vote of Security
Holders.
At the annual meeting of shareholders held on May 6,
1996, the Company's shareholders voted to adopt an
amendment to the Company's Articles of Incorporation to
change the name of the Company from AlaTenn Resources,
Inc. to ATRION Corporation, with 1,750,143 shares voted
for adoption of such amendment, 91,715 shares voted
against adoption of the amendment and 17,426 abstentions
and broker non-votes. At such meeting, the Company's
shareholders also ratified the Board of Director's
appointment of Arthur Andersen LLP as independent
accountants with 1,846,738 shares voted for ratification,
6,206 shares voted against and 6,340 abstentions and
broker non-votes. The voting with respect to the
nominees for election as directors was as follows:
Nominee Votes Votes
For Withheld
Emile A. Battat 1,821,846 37,438
John H.P. Maley 1,813,061 46,223
J. Kenneth Smith 1,817,948 41,336
The terms of the following directors continued after the
meeting: Jerry A. Howard, Richard O. Jacobson, Jerome J.
McGrath, Hugh J. Morgan, Jr., Roger F. Stebbing and John
P. Stupp, Jr.
Item 5. Other Information.
None.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits
Exhibit 27 Financial Data Schedules (Filed
electronically only)
(b) Reports on Form 8-K
A report on Form 8-K, dated June 5, 1996 was filed
reporting the acquisition of 100% of the capital stock of
HRC Acquisition Holdings Corp., which owns 100% of the
outstanding capital stock of Halkey-Roberts Corporation.
The filing included available financial information on
the acquired company. The remaining required financial
information as well as additional pro forma information
was filed with the Securities and Exchange Commission on
August 5, 1996.
<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.
ATRION Corporation
(Registrant)
Date: August 14, 1996 s/s Jerry A. Howard
Jerry A. Howard
Chairman, President
& Chief Executive
Officer
Date: August 14, 1996 s/s George G. Petty
George G. Petty
Vice President-Finance
& Chief Financial
Officer
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1996
<CASH> 3,318
<SECURITIES> 0
<RECEIVABLES> 12,736
<ALLOWANCES> 0
<INVENTORY> 4,296
<CURRENT-ASSETS> 21,032
<PP&E> 41,420
<DEPRECIATION> 16,187
<TOTAL-ASSETS> 59,794
<CURRENT-LIABILITIES> 12,306
<BONDS> 11,743
0
0
<COMMON> 228
<OTHER-SE> 32,034
<TOTAL-LIABILITY-AND-EQUITY> 59,794
<SALES> 29,589
<TOTAL-REVENUES> 29,589
<CGS> 24,319
<TOTAL-COSTS> 24,319
<OTHER-EXPENSES> 3,115
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 99
<INCOME-PRETAX> 2,269
<INCOME-TAX> 822
<INCOME-CONTINUING> 1,447
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,447
<EPS-PRIMARY> .68
<EPS-DILUTED> .68
</TABLE>
