SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the Quarterly Period Ended March 31, 1999
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 0-1282-3
Swiss Army Brands, Inc.
(Exact name of registrant as specified in its charter)
Delaware 13-2797726
(State of incorporation) (I.R.S. Employer Identification No.)
One Research Drive, Shelton, Connecticut 06484
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 929-6391
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed since last
report.)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports) and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
The number of shares of Issuer's Common Stock, $.10 par value, outstanding
on May 10, 1999, was 7,854,110 shares.
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SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
INDEX
<S> <C> <C>
PART I: FINANCIAL INFORMATION Page No.
- ------------------------------
Item 1. FINANCIAL STATEMENTS
Consolidated Balance Sheets as of
March 31, 1999 and December 31, 1998. 3 - 4
Consolidated Statements of Operations for the
Three Months Ended March 31, 1999 and 1998. 5
Consolidated Statements of Stockholders' Equity
for the Three Months Ended March 31, 1999 and
1998. 6
Consolidated Statements of Cash Flows for the
Three Months Ended March 31, 1999 and 1998. 7
Notes to Consolidated Financial Statements 8 - 9
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS 10 - 12
Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES
ABOUT MARKET RISK 12
Part II: OTHER INFORMATION
- ---------------------------
Item 6. EXHIBITS AND REPORTS ON FORM 8-K 13
Signatures 14
The Exhibit Index Appears on Page 13.
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<CAPTION>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
Assets
March 31, December 31,
1999 1998
(unaudited)
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 5,169 $ 1,309
Accounts receivable, less
allowance for doubtful accounts
of $975 for both periods 23,000 31,321
Inventories 34,809 28,890
Deferred income taxes 2,214 2,205
Prepaid and other 4,534 6,658
-------- --------
Total current assets 69,726 70,383
-------- --------
Deferred income taxes 1,076 1,069
Property, plant and equipment, net 3,569 3,735
Investments in preferred units 7,164 7,164
Investments in common stock 33 2,303
Foreign distribution rights, net 2,708 2,875
Other assets 13,020 12,875
-------- ---------
Total Assets $97,296 $100,404
======== =========
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these balance sheets.
3
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<CAPTION>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
Liabilities and Stockholders' Equity
March 31, December 31,
1999 1998
(unaudited)
<S> <C> <C>
Current liabilities:
Line of credit $ 6,060 $ 5,140
Accounts payable 10,956 12,439
Accrued liabilities 7,144 8,227
-------- --------
Total current liabilities 24,160 25,806
-------- --------
Commitments and contingencies
Stockholders' equity:
Preferred stock, par value $.10
per share: shares authorized -
2,000,000; no shares issued - -
Common stock, par value $.10 per
share: shares authorized -
18,000,000; shares issued -
8,868,218 and 8,852,218, respectively 886 885
Additional paid-in capital 46,525 46,472
Accumulated other comprehensive income (loss) (556) 177
Retained earnings 35,103 35,456
-------- --------
81,958 82,990
Less:Treasury stock; 1,006,708 and 958,108
shares, respectively (8,642) (8,194)
Deferred compensation (180) (198)
-------- --------
Total stockholders' equity 73,136 74,598
-------- --------
Total Liabilities and Stockholders' Equity $97,296 $100,404
======== ========
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these balance sheets.
4
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<TABLE>
<CAPTION>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(unaudited)
Three Months Ended
March 31,
1999 1998
<S> <C> <C>
Net sales $23,570 $24,610
Cost of sales 14,621 15,375
-------- --------
Gross profit 8,949 9,235
Selling, general and administrative expenses 9,990 10,305
-------- --------
Operating loss (1,041) (1,070)
Interest income and other, net 7 50
Gain on sale of investment 420 1,500
-------- --------
Total interest income and other, net 427 1,550
-------- --------
Income (loss) before income taxes (614) 480
Income tax provision (benefit) (261) 194
-------- --------
Net income (loss) ($353) $286
======== ========
Earnings per share:
Basic ($0.04) $0.03
======== ========
Diluted ($0.04) $0.03
======== ========
Weighted average number of
shares outstanding:
Basic 7,885 8,213
======== ========
Diluted 7,885 8,273
======== ========
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these statements.
5
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<CAPTION>
SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME
FOR THE THREE MONTHS ENDED MARCH 31, 1999 AND 1998
(In thousands, except share data)
(unaudited)
Accumulated
Common Stock Additional Other
Par Value $.10 Paid-In Comprehensive Retained Treasury Comprehensive
Shares Amount Capital Income (Loss) Earnings Stock Income (Loss)
<S> <C> <C> <C> <C> <C> <C> <C>
BALANCE
December 31, 1997 8,823,718 $882 $46,186 ($240) $33,993 ($5,113)
Net income for three
months ended
March 31, 1998 - - - - 286 - $286
Change in unrealized
gain on marketable
securities - - - (5) - - (5)
Foreign currency
translation
adjustment - - - 1 - - 1
-----
Comprehensive
income $282
=====
Stock options
exercised 8,250 1 58 - - -
----------- ------- --------- -------- -------- --------
BALANCE
March 31, 1998 8,831,968 $883 $46,244 ($244) $34,279 ($5,113)
=========== ======= ========= ======== ======== =========
BALANCE
December 31, 1998 8,858,218 $885 $46,472 $177 $35,456 ($8,194)
Net loss for three
months ended
March 31, 1999 - - - - (353) - ($353)
Change in unrealized
gain on marketable
securities - - - (788) - - (788)
Foreign currency
translation
adjustment - - - 55 - - 55
------
Comprehensive
income ($1,086)
========
Stock options
exercised 10,000 1 53 - - -
Repurchase of
common stock - - - - - (448)
--------- ------ ------- ------ ------- --------
BALANCE
March 31, 1999 8,868,218 $886 $46,525 ($556) $35,103 ($8,642)
========= ====== ======= ====== ======= ========
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these statements.
6
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SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(unaudited)
Three Months Ended
March 31,
1999 1998
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) ($353) $286
Adjustments to reconcile net income (loss) to net
cash provided from operating activities:
Stock compensation expense 18 -
Depreciation and amortization 720 714
Gain on sale of investment (420) (1,500)
Deferred income taxes (16) 19
------- -------
(51) (481)
Changes in other current assets and liabilities:
Accounts receivable 8,361 7,582
Inventories (5,910) (1,550)
Prepaid and other 2,141 609
Accounts payable (1,480) 1,408
Accrued liabilities (1,194) (1,189)
------- --------
Net cash provided from operating activities 1,867 6,379
------- --------
Cash flows from investing activities:
Capital expenditures (189) (233)
Additions to other assets (350) (265)
Proceeds from long-term investments 1,972 1,613
------- --------
Net cash provided from investing activities 1,433 1,115
Cash flows from financing activities:
Repurchase of common stock (448) -
Borrowings under bank agreements 10,110 -
Repayments under bank agreements (9,190) -
Proceeds from exercise of stock options 54 59
------- --------
Net cash provided from financing activities 526 59
------- --------
Effect of exchange rate changes on cash 34 (25)
------- --------
Net increase in cash and cash equivalents 3,860 7,528
Cash and cash equivalents, beginning of period 1,309 1,070
------- --------
Cash and cash equivalents, end of period $ 5,169 $ 8,598
======== =========
Cash paid during the period:
Interest $ 27 $ 7
======== =========
Income taxes $ - $ 95
======== =========
</TABLE>
The accompanying notes to consolidated financial statements are an integral part
of these statements.
7
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SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MARCH 31, 1999 and 1998
(unaudited)
CONSOLIDATED FINANCIAL STATEMENTS
- ---------------------------------
The consolidated financial statements included in this Form 10-Q have been
prepared by Swiss Army Brands, Inc. ("Swiss Army", the "Company") without audit.
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 the rules and regulations of the
Securities and Exchange Commission. It is suggested that these consolidated
financial statements be read in conjunction with the financial statements and
notes thereto included in the Company's report on Form 10-K for the year ended
December 31, 1998. In the opinion of management of the Company, the interim
financial statements included herein reflect all adjustments, consisting only of
normal recurring adjustments, necessary for a fair presentation of the financial
position, results of operations and cash flows for the interim periods
presented. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates. Due to the seasonal nature of the Company's business, the results of
operations for the interim periods presented are not necessarily indicative of
the operating results for the full year.
INVENTORIES
- -----------
Domestic inventories are stated at the lower of cost (determined by the
last-in, first-out (LIFO) method) or market. Foreign inventories are valued at
the lower of cost or market determined by the FIFO method. Inventories
principally consist of finished goods.
INVESTMENTS
- -----------
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Investments consist of the following:
March 31, 1999 December 31, 1998
-------------- -----------------
(in thousands)
<S> <C> <C>
Preferred units of Hudson
River Capital LLC (A) $6,313 $6,313
Preferred units of
Victory Ventures LLC (B) 851 851
------ -------
Total investments in preferred units $7,164 $7,164
====== =======
Common stock of Iron Mountain, Inc. (C) $ - $2,273
Common stock of Chaparral Resources,
Inc.(D) 33 30
------ -------
Total investments in common stock $ 33 $2,303
====== =======
</TABLE>
(A) Hudson River Capital LLC, is a private equity firm specializing in
middle market acquisitions, re-capitalization and expansion capital
investments.
(B) Victory Ventures LLC is a private equity firm specializing in small
venture capital investments.
(C) Iron Mountain, Inc., a publicly traded company, is a full service
provider of records management and related services. The Company sold its
common stock investment in Iron Mountain, Inc. in January 1999 and
recognized a gain of approximately $420,000.
8
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(D) Chapparal Resources, Inc. ("Chapparal"), a publicly traded company, is
an independent oil and gas exploration and production company. At March 31,
1999, the Company owns 87,634 shares of Chapparal common stock valued at
$0.38 per share. The Company accounts for this investment at fair value,
with changes between cost and fair value reflected as a component of
stockholders' equity.
INCOME TAXES
- ------------
Income taxes are provided at the projected annual effective tax rate. The
income tax provision (benefit) for the interim 1999 and 1998 periods exceed the
federal statutory rate of 34% due primarily to state income taxes.
SUBSEQUENT EVENT
- ----------------
On April 16, 1999, the Company and Bear Cutlery, Inc., a Delaware
corporation and a wholly owned subsidiary of the Company (the "Buyer"), entered
into an Asset Purchase Agreement (the "Agreement") with Bear MGC Cutlery, Inc.,
an Alabama corporation (the "Seller"), and the shareholders (the "Shareholders")
of the Seller, pursuant to which the Buyer acquired substantially all of the
assets (other than certain patent rights, which Seller has licensed to Buyer)
and assumed certain of the liabilities of the Seller. In consideration for the
acquisition of the assets, the Buyer paid the Seller $6,970,000 in cash upon
execution of the Agreement. In further consideration of the acquired assets, on
each of April 16, 2000, 2001 and 2002, the Buyer shall transfer to the Seller
shares of the Company's common stock, par value $.10 per share ("Common Stock"),
valued at $500,000 (based on the average daily closing price of the Common Stock
during the 30 trading days prior to April 16, 1999). Pursuant to the Agreement,
the Buyer may also pay the Seller up to an additional $2,500,000 in either cash
or a combination of cash and shares as determined in accordance with the
Agreement, if the Buyer attains certain earnings targets for the year ending
December 31, 1999.
The source of funds for the acquisition was available cash and the
Company's line of credit.
The business and assets of the Seller acquired pursuant to the Agreement
include the plant, equipment and certain of the intellectual property used for
the manufacture and marketing of multi-tools and knives to retail customers and
original equipment for industrial markets. These assets will continue to be used
for these purposes by the Company.
9
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SWISS ARMY BRANDS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1999 and 1998
(unaudited)
RESULTS OF OPERATIONS
---------------------
Sales for the three months ended March 31, 1999 were $23.6 million compared
with $24.6 million for the same period in 1998, representing a decrease of $1.0
million or 4.2%. Excluding a $2.1 million sales increase related to special
promotional programs with one customer, sales decreased by 12.9%. This decrease
was due to a 15% decrease in watch sales, a 10% decrease in cutlery sales, and a
9% decrease in sales of Victorinox products.
Gross profit of $8.9 million for the quarter ended March 31, 1999 decreased
$0.3 million or 3.1% from 1998. The gross profit margin percentage for the first
quarter of 1999 of 38.0% was higher than the gross profit margin percentage of
37.5% reported for the same period in 1998, primarily due to the increase in the
value of the U.S. dollar versus the Swiss franc offset in part by unfavorable
product mix. The Company's gross profit margin is a function of both product mix
and Swiss franc exchange rates. Since the Company imports virtually all of its
products from Switzerland, its costs are affected by both the spot rate of
exchange and by its foreign currency hedging program. The Company enters into
foreign currency contracts and options to hedge the exposure associated with
foreign currency fluctuations. Based upon current Swiss franc requirements the
Company believes it is hedged through the first quarter of 2000. However, such
hedging activity cannot eliminate the long-term adverse impact on the Company's
competitive position and results of operations that would result from a
sustained decrease in the value of the dollar versus the Swiss franc. These
hedging transactions, which are meant to reduce foreign currency risk, also
reduce the beneficial effects to the Company if the dollar increases relative to
the Swiss franc. The Company plans to continue to engage in hedging
transactions; however, the extent to which such hedging transactions will reduce
the effect of adverse currency fluctuations is uncertain.
Selling, general and administrative expenses for the three months ended
March 31, 1999 of $10.0 million were $0.3 million or 3.1% lower than the amount
for the comparable period in 1998. The decrease is primarily due to a decrease
in selling expenses offset in part by a $0.2 million charge for restructuring
costs. As a percentage of net sales, selling general and administrative expenses
increased from 41.9% in 1998 to 42.4% in 1999.
Interest income and other, net of $7,000 for the three months ended March
31, 1999 was $43,000 lower than interest income and other, net for the
comparable period in 1998 due to increased borrowings in 1999 versus 1998.
Gain on sale of investment of $420,000 in the three months ended March 31,
1999 was due to the sale of the Company's investment in Iron Mountain, Inc. The
gain on the sale of $1.5 million in 1998 was due to a cash and stock
distribution from the Company's investment in Hudson River Capital LLC.
As a result of these changes, income (loss) before income taxes for the
three months ended March 31, 1999 was a loss of $614,000 versus income of
$480,000 for the same period in 1998, a change of $1,094,000.
Income tax provision (benefit) was provided at an effective rate of 42.5%
in 1999 and 40.4% in 1998.
10
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As a result, net income (loss) for the three months ended March 31, 1999
was a loss of $353,000 ($0.04 per share - basic and diluted) versus income of
$286,000 ($0.03 per share - basic and diluted) for the same period in 1998, a
change of $639,000.
LIQUIDITY AND CAPITAL RESOURCES
-------------------------------
As of March 31, 1999, the Company had working capital of $45.6 million
compared with $44.6 million as of December 31, 1998, an increase of $1.0
million. Significant sources of working capital included $2.0 million in cash
proceeds from the sale of the Company's investment in the common stock of Iron
Mountain, Inc., and significant uses of working capital included a $0.4 million
increase in other assets, capital expenditures of $0.2 million and repurchases
of its common stock of $0.4 million. The Company currently has no material
commitments for capital expenditures.
Cash provided from operating activities was approximately $1.9 million in
the three months ended March 31, 1999 compared with $6.4 million in the
comparable period in 1998. The change resulted primarily from a larger increase
in inventory in 1999 as compared to 1998, a decrease in accounts payable in 1999
versus an increase in 1998, offset in part by a larger decrease in accounts
receivable in 1999 as compared to 1998.
Swiss Army meets its short-term liquidity needs with cash generated from
operations, and, when necessary, bank borrowings under its revolving credit
agreement. As of March 31, 1999, the Company has a $15 million commercial
promissory note agreement which expires on July 31,1999. As a result of the
Company's acquisition of certain assets of Bear MGC Cutlery, Inc., the Company
is currently reviewing its options to establish a long-term revolving credit
agreement. The Company's short- term liquidity is affected by seasonal changes
in inventory levels, payment terms and seasonality of sales. The Company
believes its current liquidity levels and financial resources will be sufficient
to meet its operating needs in the near-term.
YEAR 2000
---------
The Company has been conducting a review of its computer systems and
operations to identify those areas that could be affected by the "Year 2000"
issue and has developed an implementation plan to minimize disruption.
The Company has completed the assessment phase of its internal information
computer systems. Based upon the assessment, certain computer systems were
vulnerable to the Year 2000 issues. The Company presently believes that, with
modifications to existing software and hardware, and investment in new software
and hardware, the Year 2000 problem as it relates to its own computer systems
will not pose significant operational concerns. The Company has made significant
progress in completing its Year 2000 projects. The costs associated with the
Year 2000 compliance for the Company's computer systems primarily include costs
to upgrade computer systems not currently compliant. The majority of these costs
have and will be incurred in the normal course of business as the Company has
continually upgraded their hardware and software to keep pace with technological
advances. Based upon the Company's assessments to date, the costs of the Year
2000 initiative are estimated to be $150,000 (of which approximately $100,000
will be expensed as incurred), of which $75,000 has been spent to date.
11
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The Company is working with its significant suppliers and service providers
to ensure that those parties have appropriate plans to manage the Year 2000
issue as it relates to the Company's operations. The Company has commenced the
communication process with its significant suppliers and service providers and
expects this process to be complete by May 31, 1999.
The Company's Year 2000 initiative is expected to be completed by June 30,
1999. While the Company believes its planning efforts are adequate to address
its Year 2000 concerns, there can be no assurance that the systems of other
companies on which the Company's systems and operations rely on will be
converted on a timely basis and will not have a material adverse effect on the
Company. However, based on the progress the Company has made on its internal
initiative and the information available from third parties, the Company has not
identified a need to develop an extensive contingency plan for non-compliance
issues at this time. The need for such plan is evaluated on an ongoing basis as
part of the Company's overall Year 2000 initiative.
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
----------------------------------------------------------
Foreign Exchange Risk
The Company is exposed to market risk from changes in foreign exchange
rates as the Company imports virtually all its products from Switzerland. To
minimize the risks associated with fluctuations in the value of the Swiss franc
versus the U.S. dollar, the Company enters into foreign currency contracts and
options. Pursuant to guidelines approved by its Board of Directors, the Company
is to engage in these activities only as a hedging mechanism against foreign
exchange rate fluctuations associated with specific inventory purchase
commitments to protect gross margin and is not to engage in speculative trading.
Gains or losses on these contracts and options are deferred and recognized in
cost of sales when the related inventory is sold. At March 31, 1999, the Company
has entered into foreign currency contracts and options to purchase
approximately 81,000,000 Swiss francs in the years 1999 and 2000 at a weighted
average rate $1.457 Swiss franc/dollar. At March 31, 1999, the unrealized loss
on these contracts and options was approximately $1.1 million. The Company's
ultimate unrealized gain or loss on these contracts and options will primarily
depend on the currency exchange rates in effect at the time the contracts and
options mature. At March 31, 1999, the Company has reviewed its foreign exchange
risks and based upon its foreign currency hedging program and review of its
outstanding foreign exchange contracts, it believes that a near- term increase
in the value of the Swiss franc versus the U.S. dollar would not have a material
effect on the Company's results of operations or financial condition.
12
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<CAPTION>
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
--------------------------------
<S> <C>
a.) Exhibits
(2) Not Applicable
(3) Not Applicable
(4) Not Applicable
(10) Not Applicable
(11) Statement regarding computation of per share earnings is not
required because the relevant computation can be clearly
determined from the material contained in the Financial Statements
included herein.
(15) Not Applicable
(18) Not Applicable
(19) Not Applicable
(22) Not Applicable
(23) Not Applicable
(24) Not Applicable
(27) Financial data schedule
(99) Not Applicable
b.) There were no reports or exhibits on Form 8-K for the three months
ended March 31, 1999.
13
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Pursuant to the requirements to 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.
Swiss Army Brands, Inc.
-----------------------
(Registrant)
Date: May 10, 1999
By /s/ Thomas M. Lupinski
-------------------------
Name: Thomas M. Lupinski
Title: Senior Vice President,
Chief Financial Officer, Secretary
and Treasurer
14
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</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<CIK> 0000731947
<NAME> Swiss Army Brands, Inc.
<MULTIPLIER> 1,000
<CURRENCY> US Dollars
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> MAR-31-1999
<EXCHANGE-RATE> 1.000
<CASH> 5,169
<SECURITIES> 0
<RECEIVABLES> 23,975
<ALLOWANCES> 975
<INVENTORY> 34,809
<CURRENT-ASSETS> 69,726
<PP&E> 8,548
<DEPRECIATION> (4,979)
<TOTAL-ASSETS> 97,296
<CURRENT-LIABILITIES> 24,160
<BONDS> 0
0
0
<COMMON> 886
<OTHER-SE> 72,250
<TOTAL-LIABILITY-AND-EQUITY> 97,296
<SALES> 23,570
<TOTAL-REVENUES> 23,570
<CGS> 14,621
<TOTAL-COSTS> 9,990
<OTHER-EXPENSES> (420)
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (7)
<INCOME-PRETAX> (614)
<INCOME-TAX> (261)
<INCOME-CONTINUING> (353)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (353)
<EPS-PRIMARY> (0.04)
<EPS-DILUTED> (0.04)
</TABLE>
