SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1997
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission file number 0-4095
THOMAS NELSON, INC.
(Exact name of Registrant as specified in its charter)
Tennessee 62-0679364
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification number)
501 Nelson Place, Nashville, Tennessee 37214-1000
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (615)889-9000
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 [ ]
At February 12, 1998 the Registrant had outstanding
16,002,817 shares of Common Stock and 1,111,924 shares of Class B
Common Stock.
Part I
Item 1. Financial Statements
<TABLE>
THOMAS NELSON, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
<CAPTION>
December 31, March 31, December 31,
1997 1997 1996
----------- ------------ -------------
(Unaudited) (Unaudited)
<S> <C> <C> <C>
ASSETS
Current assets
Cash and cash equivalents $ 41,023 $ 43,471 $ 2,150
Accounts receivable, less
allowances of $8,102,
$7,000 and $7,513,
respectively 58,567 64,626 67,555
Income tax refunds receivable - - 3,604
Inventories 66,220 71,550 71,456
Prepaid expenses 7,437 9,421 8,494
Deferred tax asset 8,310 8,310 14,970
Net assets of discontinued
operations - - 68,657
---------- ---------- ----------
Total current assets 181,557 197,378 236,886
Property, plant and equipment 32,740 32,843 33,308
Other assets 10,062 10,466 12,209
Deferred charges 1,990 2,785 2,949
Goodwill 56,929 58,099 59,262
---------- ---------- ----------
TOTAL ASSETS $ 283,278 $ 301,571 $ 344,614
========== ========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Accounts payable $ 11,369 $ 18,880 $ 16,935
Accrued expenses 19,446 22,740 16,839
Dividends payable 685 685 685
Income taxes currently payable 8,023 19,974 4,996
Current portion of long-term
debt & capital lease
obligations 3,257 3,247 3,322
---------- ---------- ----------
Total current liabilities 42,780 65,526 42,777
Long-term debt 80,725 83,162 168,239
Capital lease obligations 156 377 349
Deferred tax liability 3,640 3,640 3,127
Other liabilities 1,556 2,054 1,093
Shareholders' equity
Preferred stock, $1.00 par value,
authorized 1,000,000 shares;
none issued - - -
Common stock, $1.00 par value,
authorized 20,000,000 shares;
issued 16,002,817, 16,001,178
and 16,003,971 shares,
respectively 16,003 16,001 16,004
Class B common stock, $1.00 par
value, authorized 5,000,000
shares; issued 1,111,924,
1,112,071 and 1,112,071
shares, respectively 1,112 1,112 1,112
Additional paid-in capital 79,057 79,409 79,320
Retained earnings 58,249 50,290 32,858
Deferred compensation - - ( 265)
---------- ---------- ----------
Total shareholders' equity 154,421 146,812 129,029
---------- ---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 283,278 $ 301,571 $ 344,614
========== ========== ==========
See Accompanying Notes
</TABLE>
<TABLE>
THOMAS NELSON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
<CAPTION>
Nine Months Ended Three Months Ended
December 31, December 31,
1997 1996 1997 1996
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
NET REVENUES $ 187,735 $ 183,942 $ 64,658 $ 63,557
COST AND EXPENSES:
Cost of goods sold 102,568 98,977 35,164 35,599
Selling, general and
administrative 64,137 65,107 20,760 19,622
Amortization of goodwill
and non-compete
agreements 1,433 1,485 437 496
---------- ---------- ---------- ---------
Total expenses 168,138 165,569 56,361 55,717
---------- ---------- ---------- ---------
OPERATING INCOME 19,597 18,373 8,297 7,840
Other income 1,085 312 277 104
Interest expense 4,568 7,021 1,483 2,391
---------- ---------- ---------- ---------
Income from continuing
operations before
income taxes 16,114 11,664 7,091 5,553
Provision for income taxes 6,103 4,432 2,674 2,110
---------- ---------- ---------- ---------
Income from continuing
operations, net 10,011 7,232 4,417 3,443
Income from discontinued
operations, net - 728 - 803
---------- ---------- ---------- ---------
NET INCOME $ 10,011 $ 7,960 $ 4,417 $ 4,246
========== ========== ========== =========
Weighted average number
of shares outstanding:
Basic 17,112 17,121 17,112 17,121
========== ========== ========== =========
Diluted 20,384 20,373 20,392 20,371
========== ========== ========== =========
NET INCOME PER SHARE:
Basic--
Income from continuing
operations $ 0.59 $ 0.42 $ 0.26 $ 0.20
Income from discontinued
operations - 0.04 - 0.05
---------- ---------- ---------- ---------
$ 0.59 $ 0.46 $ 0.26 $ 0.25
========== ========== ========== =========
Diluted--
Income from continuing
operations $ 0.57 $ 0.42 $ 0.24 $ 0.19
Income from discontinued
operations - 0.04 - 0.04
---------- ---------- ---------- ---------
$ 0.57 $ 0.46 $ 0.24 $ 0.23
========== ========== ========== =========
DIVIDENDS DECLARED
PER SHARE $ 0.12 $ 0.12 $ 0.04 $ 0.04
========== ========== ========== =========
See Accompanying Notes
</TABLE>
<TABLE>
THOMAS NELSON, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
<CAPTION>
Nine Months Ended December 31,
------------------------------
1997 1996
---------- ----------
(Unaudited) (Unaudited)
<S> <C> <C>
CASH FLOWS FROM CONTINUING OPERATING
ACTIVITIES:
Income from continuing operations $ 10,011 $ 7,232
Adjustments to reconcile net income
to net cash provided by operations:
Depreciation and amortization 6,213 8,257
Loss on sale of fixed assets - ( 22)
Deferred compensation - 563
Changes in assets and liabilities, net of
acquisitions and disposals:
Accounts receivable, net 6,059 4,446
Income tax refunds receivable - 836
Inventories 5,330 7,852
Prepaid expenses 1,984 2,727
Accounts payable and accrued expenses ( 8,846) ( 10,915)
Income taxes currently payable and
deferred ( 11,951) 4,996
----------- -----------
Net cash provided by continuing operations 8,800 25,972
----------- -----------
Discontinued operations:
Income from discontinued operations - 728
Changes in discontinued assets 524 801
Cash used in discontinued operations ( 2,483) ( 7,259)
----------- -----------
Net cash used in discontinued operations ( 1,959) ( 5,730)
----------- -----------
Net cash provided by operating activities 6,841 20,242
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures ( 2,938) ( 1,290)
Proceeds from sale of business and
discontinued assets - 139
Purchase of net assets of acquired
companies - net of cash received - ( 170)
Changes in other assets and deferred
charges ( 803) ( 4,369)
----------- -----------
Net cash used in investing activities ( 3,741) ( 5,690)
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings under line of credit - ( 9,025)
Payments under capital lease obligation ( 256) ( 198)
Payments on long-term debt ( 2,392) ( 1,508)
Dividends paid ( 2,052) ( 2,055)
Proceeds from issuance of common stock 14 651
Common stock retired ( 4) ( 156)
Other financing activities ( 858) ( 783)
----------- -----------
Net cash used in financing activities ( 5,548) ( 13,074)
----------- -----------
Net increase (decrease) in cash and cash
equivalents ( 2,448) 1,478
Cash and cash equivalents at beginning of
period 43,471 672
----------- -----------
Cash and cash equivalents at end of period $ 41,023 $ 2,150
=========== ===========
Supplemental disclosures of non-cash investing
and financing activities:
Dividends accrued and unpaid $ 685 $ 685
Capital lease obligations incurred to
lease new equipment $ - $ 50
</TABLE>
THOMAS NELSON, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note A - Basis of Presentation
The accompanying unaudited consolidated financial statements
reflect all adjustments (which are of a normal recurring nature)
that are, in the opinion of management, necessary for a fair
statement of the results for the interim periods presented.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to SEC
rules and regulations. The statements should be read in
conjunction with the Summary of Significant Accounting Policies
and notes to the consolidated financial statements included in
the Company's annual report for the year ended March 31, 1997.
The balance sheet and related information in these notes as
of March 31, 1997, have been taken from the audited consolidated
financial statements as of that date. Certain reclassifications
have been made to conform presentation of the fiscal 1997
Financial Statements with fiscal 1998 presentation.
Note B - New Pronouncements
Computation of Net Income Per Share: Statement of Financial
Accounting Standards No. 128, "Earnings per Share" ("SFAS 128")
has been issued effective for interim and annual fiscal periods
ending after December 15, 1997. SFAS 128 establishes standards
for computing and presenting earnings per share. The Company
adopted the provisions of SFAS 128 in the third quarter of fiscal
1998 and restated earnings per share for all periods presented.
Such adoption did not have a material effect on the Company's
results of operations or financial position. Basic net income
per share is computed by dividing net income by the weighted
average number of common and Class B common shares outstanding
during the year. Diluted earnings per share reflects the
dilutive effect of stock options outstanding during the period
and common shares contingently issuable upon conversion of
convertible debt securities in periods in which such exercise
would cause dilution and the effect on net income of converting
the debt securities.
Disclosure of Information about Capital Structure: In
February 1997, the FASB issued Statement of Financial Accounting
Standards No. 129, "Disclosure of Information about Capital
Structure" ("SFAS 129"). SFAS 129 establishes standards for
disclosing information about an entity's capital structure. The
Company adopted SFAS 129 in the third quarter of fiscal 1998.
Note C - Inventories
Components of inventories consisted of the following (in
thousands):
<TABLE>
<CAPTION>
December 31, March 31, December 31,
1997 1997 1996
----------- --------- -----------
<S> <C> <C> <C>
Finished goods $ 54,032 $ 53,634 $ 55,450
Raw materials and
work in process 12,188 17,916 16,006
----------- --------- -----------
$ 66,220 $ 71,550 $ 71,456
=========== ========= ===========
</TABLE>
Note D - Cash Dividend
On May 23, 1997, the Company's directors declared a cash
dividend of $.04 per share of Common and Class B Common Stock.
The dividend was paid August 18, 1997, to shareholders of record
on August 4, 1997.
On August 21, 1997, the Company's directors declared a cash
dividend of $.04 per share of Common and Class B Common Stock.
The dividend was paid November 17, 1997, to shareholders of
record on November 3, 1997.
On November 20, 1997, the Company's directors declared a
cash dividend of $.04 per share of Common and Class B Common
Stock. The dividend is payable February 16, 1998, to
shareholders of record on February 2, 1998.
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
OVERVIEW
On January 6, 1997, the Company sold the assets, subject to
certain liabilities, of the music division ("Music Business").
The operating results of the Music Business for the three and
nine month periods ended December 31, 1996, are reported as
income from discontinued operations.
The following table sets forth for the periods indicated
certain selected statements of operations data of the Company
expressed as a percentage of net revenues and the percentage
change in dollars in such data from the prior fiscal year.
<TABLE>
<CAPTION>
Nine Months Ended
December 31, Fiscal Year-to-Year
------------------- Increase
1997 1996 (Decrease)
------- ------- ----------
(%) (%) (%)
<S> <C> <C> <C>
Net revenues
Publishing 65.7 63.5 5.7
Gift 34.3 36.5 ( 4.2)
------ ------
Total net revenues 100.0 100.0 2.1
------ ------
Expenses
Cost of goods sold 54.6 53.8 3.6
Selling, general and
administrative 34.2 35.4 ( 1.5)
Amortization of
goodwill and
non-compete
agreements 0.8 0.8 ( 3.5)
------ ------
Total expenses 89.6 90.0 1.6
------ ------
Operating income 10.4 10.0 6.7
====== ======
Income from continuing
operations 5.3 3.9 38.4
Income from discontinued
operations, net of
taxes -- 0.4 ( 100.0)
------ ------
Net income 5.3 4.3 25.8
====== ======
</TABLE>
The Company's net revenues fluctuate seasonally, with net
revenues in the first fiscal quarter historically being lower
than those for the remainder of the year. This seasonality is
the result of increased consumer purchases of the Company's
products during the traditional holiday periods. In addition,
the Company's quarterly operating results may fluctuate
significantly due to the seasonality of new product
introductions, the timing of selling and marketing expenses and
changes in sales and product mixes.
The following discussion includes certain forward-looking
statements. Actual results could differ materially from those
reflected by the forward-looking statements and a number of
factors may affect future results, liquidity and capital
resources. These factors include softness in the general retail
environment, the timing of products being introduced to the
market, the level of returns experienced by operating divisions,
the level of margins achievable in the marketplace and the
ability to minimize operating expenses. Although the Company
believes it has the business strategy and resources needed for
improved operations, future revenue and margin trends cannot be
reliably predicted and may cause the Company to adjust its
business strategy during the remainder of fiscal 1998.
Results of Operations
Net revenues for the first nine months of fiscal 1998
increased by $3.8 million, or 2.1%, over the same period in
fiscal 1997. The publishing product net revenues increased $6.6
million, or 5.7%, primarily due to favorable acceptance of new
product offerings and reductions in product returns. Net
revenues from gift products decreased $2.8 million, or 4.2%,
compared to the prior year primarily due to reduced sales of the
stationery category to mass merchandisers. Net revenues for the
third quarter of fiscal 1998 increased $1.1 million, or 1.7%,
over the same period in fiscal 1997. The publishing product net
revenues increased $3.7 million, or 8.3%, for the third quarter
compared to the prior year quarter, primarily due to new product
introductions. Net revenues from gift products decreased $2.6
million, or 13.5%, primarily due to the above mentioned reduction
in sales to mass merchandisers. Price increases did not have a
material effect on net revenues.
The Company's cost of goods sold for the first nine months
of fiscal 1998 increased by $3.7 million, or 3.6%, over the same
period in fiscal 1997 and, as a percentage of net revenues,
increased to 54.6% from 53.8% in the comparable period of fiscal
1997. Cost of goods sold for the third quarter of fiscal 1998
decreased by $0.4 million, or (1.2)%, over the same period in
fiscal 1997 and, as a percentage of net revenues, decreased to
54.4% from 56.0% in the comparable period in fiscal 1997. The
increase in cost of goods sold, as a percentage of net revenues,
for the first nine months resulted primarily from the impact of
the prior year's licensing revenue. In the first nine months of
fiscal 1997 the Company had higher licensing revenues which have
minimal associated cost of goods sold. The Company periodically
receives licensing revenues from companies that request
permission to reprint the Company's publishing products and
market them through a channel that might not currently be served.
The decrease in cost of goods sold, as a percentage of net
revenues, for the third quarter of fiscal 1997 was primarily due
to a change in product mix. Within the publishing products
division, for the third quarter of fiscal 1998, the Company
experienced a lesser percentage of revenues from Bible products,
which have higher costs of goods sold than other publishing
products.
Selling, general and administrative expenses for the first
nine months of fiscal 1998 decreased by $1.1 million, or 1.5%,
and for the third quarter decreased by $1.2 million, or 5.8%,
from the same periods in fiscal 1997. These expenses, expressed
as a percentage of net revenues, decreased to 34.2% for the first
nine months of fiscal 1998 from 35.4% in the same period in
fiscal 1997 due to reductions in general expenditures. For the
quarter, these expenses, expressed as a percentage of net
revenues, increased to 32.1% from 30.9% in the same period of
fiscal 1997 primarily due to increases in freight costs from new
programs introduced this year and timing of certain marketing
expenditures.
Interest expense for the first nine months of fiscal 1998
decreased by $2.4 million, or 34.9%, and decreased for the third
quarter by $0.9 million, or 38.0%, over the same period in fiscal
1997 due to decreased borrowings as a result of the use of a
portion of the proceeds from the sale of the Music Business to
repay indebtedness and decreased working capital assets.
Liquidity and Capital Resources
At December 31, 1997, the Company had $41.0 million in cash
and cash equivalents. The primary sources of liquidity to meet
the Company's future obligations and working capital needs are
cash generated from operations and borrowings available under
bank credit facilities. At December 31, 1997, the Company had
working capital of $138.8 million.
Net cash provided by operating activities was $6.8 million
and $20.2 million for the first nine months of fiscal 1998 and
1997, respectively. Cash provided by operations during the first
nine months of fiscal 1998 was principally attributable to income
from continuing operations and decreases in accounts receivable
and inventories. Cash provided by operations during the first
nine months of fiscal 1997 was principally attributable to income
from continuing operations and a decrease in inventories.
During the first nine months of fiscal 1998, capital
expenditures totaled approximately $2.9 million, which was used
primarily to purchase computer, warehousing and manufacturing
equipment. During the remainder of fiscal 1998, the Company
anticipates capital expenditures of approximately $1.0 million
primarily consisting of additional computer, warehousing and
manufacturing equipment.
The Company's bank credit facilities are unsecured and
consist of a $75 million credit facility and a $10 million credit
facility (collectively, the "Credit Agreements"). The $75
million credit facility bears interest at either the prime rate
or, at the Company's option, LIBOR plus a percentage, subject to
adjustment based on certain financial ratios, and matures on
December 13, 2002. The $10 million credit facility bears
interest at the prime rate and matures on July 31, 1999. At
December 31, 1997, the Company had no borrowings outstanding
under the Credit Agreements, and $85 million available for
borrowing. Due to the seasonality of the Company's business,
borrowings under the Credit Agreements typically peak during the
third quarter of the fiscal year.
At December 31, 1997, the Company had outstanding $24
million of unsecured senior notes ("Senior Notes"). The Senior
Notes bear interest at rates from 6.68% to 9.50% due through
fiscal 2008.
Under the terms of the Credit Agreements and the Senior
Notes, the Company has agreed to limit the payment of dividends
and to maintain certain interest coverage and debt-to-total-
capital ratios which are similarly calculated for each debt
agreement. At December 31, 1997, the Company was in compliance
with all covenants of these debt agreements, as amended.
The Company also has outstanding $55 million of 5.75%
convertible subordinated notes ("Convertible Subordinated Notes")
due November 30, 1999. The Convertible Subordinated Notes
presently are convertible into common stock at $17.00 per share
and are redeemable at the Company's option after November 30,
1995, at 103.29% of the principal amount, declining annually
thereafter to 100% on November 30, 1999.
Management believes cash generated by operations and
borrowings available under the Credit Agreements will be
sufficient to fund anticipated working capital requirements for
existing operations through the remainder of fiscal 1998.
Year 2000 Conversion
The Company has established a task force to coordinate the
identification, evaluation, and implementation of changes to
computer systems and applications necessary to achieve a year
2000 date conversion with no effect on customers or disruption to
business operations. These actions are necessary to ensure that
the systems and applications will recognize and process the year
2000 and beyond. The Company is also evaluating non-system
issues relative to the year 2000. Major areas of potential
business impact have been identified and are being evaluated, and
initial conversion efforts are underway. The Company also is
communicating with suppliers, customers, financial institutions
and others with which it does business to coordinate year 2000
conversion. The total cost of compliance and its effect on the
Company's future results of operations is being determined as
part of the detailed conversion planning.
PART II
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits required by Item 601 of Regulation S-K
Exhibit 11- Statement Re Computation of Per Share
Earnings
Exhibit 27- Financial Data Schedule
(b) No Form 8-K was filed by the Company during the quarter
ended December 31, 1997.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Company has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
Thomas Nelson, Inc.
(Registrant)
February 13, 1998 BY /s/ Joe L. Powers
- - ------------------------------ ----------------------
Joe L. Powers
Executive Vice President
(Principal Financial and
Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted
from the Company's 10-Q for the period ended December 31, 1997,
and is qualified in its entirety by reference to such financial
statements and the notes thereto.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1998
<PERIOD-START> APR-01-1997
<PERIOD-END> DEC-31-1997
<CASH> 41,023
<SECURITIES> 0
<RECEIVABLES> 66,669
<ALLOWANCES> 8,102
<INVENTORY> 66,220
<CURRENT-ASSETS> 181,557
<PP&E> 60,425
<DEPRECIATION> 27,685
<TOTAL-ASSETS> 283,278
<CURRENT-LIABILITIES> 42,780
<BONDS> 80,881
0
0
<COMMON> 17,115
<OTHER-SE> 137,306
<TOTAL-LIABILITY-AND-EQUITY> 283,278
<SALES> 185,476
<TOTAL-REVENUES> 187,735
<CGS> 102,568
<TOTAL-COSTS> 166,705
<OTHER-EXPENSES> 1,433
<LOSS-PROVISION> 1,556
<INTEREST-EXPENSE> 4,568
<INCOME-PRETAX> 16,114
<INCOME-TAX> 6,103
<INCOME-CONTINUING> 10,011
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,011
<EPS-PRIMARY> 0.59
<EPS-DILUTED> 0.57
</TABLE>
<TABLE>
EXHIBIT 11
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(Dollars in thousands, except per share data)
<CAPTION>
Nine Months Ended Three Months Ended
December 31, December 31,
1997 1996 1997 1996
---------- ----------- ---------- ----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
BASIC EARNINGS PER SHARE:
Weighted average shares
outstanding 17,112 17,121 17,112 17,121
========== ========== ========== =========
Income from continuing
operations $ 10,011 $ 7,232 $ 4,417 $ 3,443
Income from discontinued
operations - 728 - 803
---------- ---------- ---------- ---------
Net income $ 10,011 $ 7,960 $ 4,417 $ 4,246
========== ========== ========== =========
Income per share from
continuing operations $ 0.59 $ 0.42 $ 0.26 $ 0.20
Income per share from
discontinued operations - 0.04 - 0.05
---------- ---------- ---------- ---------
Net income per share $ 0.59 $ 0.46 $ 0.26 $ 0.25
========== ========== ========== =========
DILUTED EARNINGS PER SHARE:
Weighted average shares
outstanding 17,149 17,138 17,157 17,136
Convertible notes 3,235 3,235 3,235 3,235
---------- ---------- ---------- ---------
Total shares 20,384 20,373 20,392 20,371
========== ========== ========== =========
Income from continuing
operations<F1> $ 11,542 $ 8,815 $ 4,925 $ 3,971
Income from discontinued
operations - 728 - 803
---------- ---------- ---------- ---------
Net income $ 11,542 $ 9,543 $ 4,925 $ 4,774
========== ========== ========== =========
Income per share from
continuing operations $ 0.57 $ 0.42 $ 0.24 $ 0.19
Income per share from
discontinued operations - 0.04 - 0.04
---------- ---------- ---------- ---------
Net income per share $ 0.57 $ 0.46<F2> $ 0.24 $ 0.23
========== ========== ========== =========
<FN>
<F1> Adjusted for interest on convertible debt
<F2> Anti-dilutive; use basic earnings per share
</TABLE>
