Securities and Exchange Commission
Washington D.C. 20549
Form 10-QSB
(Mark One)
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended February 28, 1997
----------------------------------
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to
-------------- ----------------
Commission File Number 0-15304
-----------------------
AVESIS INCORPORATED
- --------------------------------------------------------------------------------
(Exact name of small business issuer as
specified in its charter)
Delaware 86-0349350
- ------------------------------- -------------------------------
(State or other jurisdiction of
incorporation or organization) (IRS Employer Identification No.)
100 West Clarendon Avenue, Suite 2300 Phoenix, Arizona 85013
- -------------------------------------------------------------------------------
(Address of principal executive offices)
(602) 241 - 3400
-------------------------------
(Issuer's telephone number)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 outstanding shares of the registrant's Common Stock on
April 2, 1997 was 4,100,420.
TRANSITIONAL SMALL BUSINESS DISCLOSURE FORMAT
(Check One) [ ] Yes [X] No
1 of 10
<PAGE>
PART I FINANCIAL INFORMATION
Item 1 Financial Statements
AVESIS INCORPORATED
BALANCE SHEET
AS OF FEBRUARY 28, 1997
(Unaudited)
<TABLE>
<CAPTION>
ASSETS
------
<S> <C>
Current assets:
Cash and cash equivalents $ 560,211
Receivables, net 518,083
Prepaid expenses and other 76,873
-----------
Total current assets 1,155,167
Property and equipment, net 568,349
Deferred debenture issuance costs, net 1,499
Deposits 183,815
-----------
Total Assets $ 1,908,830
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Accounts payable $ 516,820
Accrued expenses-
Compensation 51,066
Other 145,460
Convertible subordinated debentures 189,000
Less unamortized debenture discount (1,588)
Deferred income 23,264
-----------
Total current liabilities 924,022
Accrued rent 108,884
Notes payable to stockholders 160,000
-----------
Total liabilities 1,192,906
-----------
Stockholders' equity:
Preferred stock $.01 par value, authorized
12,000,000 shares:
$100 Class A, nonvoting cumulative convertible preferred
stock, Series 1, $.01 par value; authorized 1,000,000
shares; none issued and outstanding (liquidation preference
of $100 per share) - - - - -
$10 Class A, nonvoting cumulative convertible preferred stock,
Series 2, $.01 par value; authorized 1,000,000 shares; 388,180 shares
issued and outstanding (liquidation preference of
$10 per share) 3,882
Class A, voting cumulative convertible preferred stock,
Series 3, $.01 par value; authorized 100,000 shares; none issued
and outstanding (liquidation preference of $100 per share) - - - - -
Common stock of $.01 par value, authorized
12,000,000 shares; 4,100,420 shares issued and outstanding 41,004
Additional paid-in capital 9,949,158
Accumulated deficit (9,278,120)
-----------
Net stockholders' equity 715,924
-----------
$ 1,908,830
===========
</TABLE>
The accompanying notes are an integral part of these statements.
- 2 -
<PAGE>
AVESIS INCORPORATED
STATEMENTS OF OPERATIONS
FOR THE QUARTER AND NINE MONTHS ENDED FEBRUARY 28, 1997 AND FEBRUARY 29, 1996
(Unaudited)
<TABLE>
<CAPTION>
Quarters Ended Nine Months Ended
February 28 February 29 February 28 February 29
-------------------------- --------------------------
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Service revenues:
Administration fees $ 1,001,962 1,031,131 $ 2,678,431 $ 3,146,040
Provider fees 38,885 48,599 107,221 157,721
Buying group 368,344 370,284 1,127,865 1,103,971
Other 7,323 18,506 52,301 70,466
----------- ----------- ----------- -----------
Total service revenues 1,416,514 1,468,520 3,965,818 4,478,198
Cost of services 1,091,994 953,973 2,856,054 2,880,245
----------- ----------- ----------- -----------
Income from services 324,520 514,547 1,109,763 1,597,953
General and administrative expenses 250,832 426,851 757,776 1,017,933
Selling and marketing expenses 101,340 230,784 392,291 692,167
----------- ----------- ----------- -----------
Income (loss) from operations (27,652) (143,088) (40,304) (112,147)
----------- ----------- ----------- -----------
Non-operating income (expense):
Other income (expense) - - - - - - - - - - (79) 15,171
Interest income 6,447 7,570 18,680 19,589
Interest expense (7,332) (7,358) (22,076) (22,401)
----------- ----------- ----------- -----------
Net non-operating income
(expense) (885) 212 (3,475) 12,359
----------- ----------- ----------- -----------
Net (loss) $ (28,537) $ (142,876) $ (43,779) $ (99,788)
=========== =========== =========== ===========
Net income (loss) per common
share $ (0.03) $ (0.06) $ (0.07) $ (0.09)
=========== =========== =========== ===========
Weighted average common
shares and equivalents
outstanding 4,100,420 4,075,420 4,100,420 4,075,420
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
- 3 -
<PAGE>
AVESIS INCORPORATED
STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED FEBRUARY 28, 1997 AND FEBRUARY 29, 1996
(Unaudited)
<TABLE>
<CAPTION>
1997 1996
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net (loss) $ (43,779) $ (99,788)
--------- ---------
Adjustments to reconcile net income to net
cash provided by in operating activities:
Depreciation and amortization 127,449 91,486
Gain on sale of property and equipment -0- (8,004)
Gain on retirement of debentures -0- (7,067)
Provision for losses on accounts receivable (149) (6,948)
Changes in assets and liabilities:
(Increase) decrease in receivables (202,527) 1,023
Decrease (increase) in prepaid expenses 36,203 (16,175)
Decrease in other assets -0- 2,907
Increase in accounts payable 292,910 35,095
Increase in accrued expenses 10,161 30,838
(Decrease) in deferred income (8,101) (15,212)
Increase in accrued rent 5,683 12,598
--------- ---------
Total adjustments 261,629 120,541
--------- ---------
Net cash provided by operating activities 217,850 20,753
--------- ---------
Cash flows from investment activities:
Purchases of property and equipment (93,722) (278,522)
Proceeds from dispositions of property and equipment -0- 8,250
--------- ---------
Net cash used in investing activities (93,722) (270,272)
--------- ---------
Cash flows from financing activities:
Repurchase of convertible subordinated debentures -0- (59,743)
--------- ---------
Net cash used in financing activities -0- (59,743)
--------- ---------
Net increase (decrease) in cash and cash equivalents 124,128 (309,262)
Cash and cash equivalents, beginning of period 436,083 815,567
--------- ---------
Cash and cash equivalents, end of period $ 560,211 $ 506,305
========= =========
Supplemental information:
- -------------------------
(a) Interest paid during the period -
Debentures 8,978 8,978
Notes payable to stockholders 5,629 4,839
</TABLE>
The accompanying notes are an integral part of these statements.
- 4 -
<PAGE>
AVESIS INCORPORATED
NOTES TO FINANCIAL STATEMENTS
FEBRUARY 28, 1997 AND FEBRUARY 29, 1996
(Unaudited)
1. The condensed financial statements included herein have been prepared by the
Company without audit pursuant to the rules and regulations of the
Securities and Exchange Commission.
Certain information and footnote disclosures normally included in financial
statements prepared at the fiscal year end have been condensed or omitted
pursuant to such rules and regulations, although the Company believes that
the disclosures are adequate to make the information presented not
misleading.
In the opinion of Management, the adjustments included in the accompanying
interim financial statements include all adjustments, which are all of a
normal recurring nature, necessary in order to make the financial statements
not misleading, and present fairly the Company's financial position and the
results of operations and cash flows for the periods indicated.
The results of operations for the period ended February 28, 1997, are not
necessarily indicative of the results to be expected for the complete fiscal
year.
2. For the quarter and nine months ended February 28, 1997, loss per common
share is computed by dividing net loss, after giving appropriate effect to
undeclared preferred stock dividends payable and accrued during the period
($87,342 and $262,026 for the quarter and nine months, respectively) by the
weighted average number of common shares outstanding during the period. (See
Exhibit 11)
- 5 -
<PAGE>
Item 2 Management's Discussion and Analysis or Plan of Operations For the
Quarters and Nine Months Ended February 28, 1997 and February 29, 1996
The statements contained in this discussion and analysis regarding management's
anticipation of adequacy of cash reserves for operations, adequacy of reserves
for claims, adequacy of capital allocation for debentures, sustained viability
of the Company, continued positive cash flows and increased marketability of the
Company, constitute "forward-looking" statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Management's anticipation is
based upon assumptions regarding the market in which the Company operates, the
level of competition, demand for services, stability of costs, retention of
sponsors and cardholders enrolled in the Company's benefit programs, relevance
of the Company's historical performance, and stability of the regulatory
environment. Any of these assumptions could prove inaccurate, and therefore
there can be no assurance that the forward-looking information will prove to be
accurate.
Results of Operations:
- ----------------------
Service revenues totaled $1,416,514 and $3,965,818 for the quarter and nine
months ended February 28, 1997, compared to $1,468,520 and $4,478,198 for the
same periods in fiscal 1996, representing decreases of $52,006 (4%) and $512,380
(11%) for the quarter and nine months ended February 28, 1997 compared to the
same periods in the prior year, respectively. The Company's administration fees
from vision and hearing programs accounted for $753,868 (53%) and $624,852 (43%)
of total service revenues for the quarters ended February 28, 1997 and February
29, 1996, respectively, and $1,727,865 (44%) and $1,909,003 (43%) of total
service revenues for the nine months ended February 28, 1997 and February 29,
1996, respectively. The net change in vision and hearing revenue, from the prior
fiscal year to the current fiscal year, was primarily the result of the loss of
one sponsor during October 1996 and the addition of a new vision plan sponsor
during January 1997. A "sponsor" is an employer, insurance group, or other
organization that offers the Company's benefits to it employees/members. The
loss of the above mentioned sponsor reduced total vision, hearing and dental
cardholders by approximately 60,000. This loss was partially offset by the
addition of a new sponsor that enrolled approximately 37,000 cardholders in the
Company's vision plan. There were approximately 366,000 and 399,000 vision and
40,000 and 93,000 hearing cardholders as of February 28, 1997 and February 29,
1996, respectively. The other changes to cardholder totals primarily resulted
from fluctuations in cardholder amounts in previously existing plans, in the
normal course of business.
Vision provider fee revenue declined by $9,714 (20%) and $50,500 (32%) during
the quarter and nine months ended February 28, 1997 compared to the same periods
in fiscal year 1996 due in part to a modification of the Company's agreements
with its providers. A provider is a doctor or other practitioner that has agreed
to provide services to the Company's benefit plan cardholders. Under the
modified agreement, for new sponsors, the providers are not required to pay a
fee based on gross sales to that sponsor's members.
The Company's dental program accounted for $245,921 (17%) and $472,375 (32%) of
total service revenues for the quarters ended February 28, 1997 and February 29,
1996, respectively, and $946,590 (24%) and $1,386,943 (31%) of total service
revenues for the nine months ended February 28, 1997 and February 29, 1996,
respectively. The change in revenue for this line of business, from the prior
fiscal year to the current fiscal year, was due to the loss of 60,000
cardholders, as discussed above, and the addition of cardholders in previously
existing plans, in the normal course of business. There were approximately
80,000 and 125,000 dental cardholders as of February 28, 1997 and February 29,
1996, respectively.
On December 28, 1992, the Company completed the sale of its pharmacy line of
business to Med Net (formerly Medi-Mail, Inc.) for 298,333 unregistered and
35,000 registered shares of Medi-Mail Common Stock. The Company contracted to
provide certain administrative services with respect to the pharmacy line of
business until December 31, 1993. However, due to delays encountered by
Medi-Mail during the conversion of the claims processing, the Company entered
into a month to month agreement to continue to provide administrative services
to Medi-Mail. Medi-Mail terminated the agreement in August 1995; therefore, the
Company did not generate any revenues related to the pharmaceutical program for
the quarter ended February 28, 1997. Pharmaceutical revenues were $78,281 (2%)
of total service revenues during the nine months ended February 29, 1996.
-6-
<PAGE>
The Company makes available to its providers a buying group program that enables
the provider to purchase frames from the manufacturers at discounts from
wholesale costs. These discounted prices are generally lower than a provider
could negotiate individually due to the large volume of purchases of the buying
group. Buying group revenues accounted for $368,344 (26%) and $370,290 (25%) of
total service revenues for the quarters ended February 28, 1997 and February 29,
1996, respectively, and $1,127,865 (28%) and $1,103,971 (24%) of total service
revenues for the nine months ended February 28, 1997 and February 29, 1996,
respectively.
Card production activity for non-Avesis groups was phased out during the quarter
ended February 28, 1997, as the historical revenues generated from this activity
were not sufficient to justify the resources expended. Revenues resulting from
this activity were recorded by the Company as other service revenues.
Past and future revenues in all lines of business are directly related to the
number of cardholders enrolled in the Company's benefit programs. However, there
may be significant pricing differences depending on whether the benefit is
insured in part or whole by the plan sponsor. The Company's cardholder base
principally is derived from a limited number of sponsors. The Company's four
largest sponsors account for approximately 59% and 65% of the total
administration fee revenue for the quarters ended February 28, 1997 and February
29, 1996, respectively.
Cost of services were $1,091,994 and $953,973 for the quarters ended February
28, 1997 and February 29, 1996, respectively, and $2,856,054 and $2,880,245 for
the nine months ended February 28, 1997 and February 29, 1996, respectively.
Cost of services increased $138,021 (14%) and decreased $24,191 (1%) for the
quarter and nine months ended February 28, 1997, respectively, compared to the
same periods in the prior fiscal year. These costs primarily relate to servicing
cardholders, providers, and sponsors under the Company's vision, hearing and
dental benefit programs as well as the cost of frames that are sold through the
Company's buying group program as discussed above. The increase in cost of
services during the quarter ended February 28, 1997 compared to the same period
in the prior fiscal year was primarily due to the increased claims expense
directly related to the new sponsor, mentioned above and discussed further under
"Liquidity and Capital Resources" below. The decrease in cost of services during
the nine months ended February 28, 1997 compared to the same period in the prior
fiscal year was due to the associated decrease in revenue during that period.
The cost of services did not decrease as greatly as revenue due to the loss of
efficiencies of scale related to the volume of claims paid. However, due to the
reorganization in the customer service and claims processing area of the
Company's activities, where a portion of the middle management was eliminated,
the Company realized a decrease in personnel expense included in the cost of
services.
General and administrative expenses were $250,832 and $426,851 for the quarters
ended February 28, 1997 and February 29, 1996, respectively, and $757,776 and
$1,017,933 for the nine months ended February 28, 1997 and February 29, 1996,
respectively. General and administrative expenses decreased $176,019 (41%) and
$260,157 (26%) for the quarter and nine months ended February 28, 1997,
respectively, compared to the same periods in the prior fiscal year. These costs
include depreciation, legal and professional fees, insurance and consulting fees
related to National Health Enterprises (management consultants). The decrease is
primarily due to a reduction in personnel involved in the finance and accounting
functions, and legal fees and expenses of approximately $175,000 related to a
lawsuit settled in the prior fiscal year.
Selling and marketing expenses were $101,340 and $230,784 for the quarters ended
February 28, 1997 and February 29, 1996, respectively, and $392,291 and $692,167
for the nine months ended February 28, 1997 and February 29, 1996, respectively.
Selling and marketing expenses decreased $129,444 (56%) and $299,876 (43%) for
the quarter and nine months ended February 28, 1997, respectively, compared to
the same periods in the prior fiscal year. Selling and marketing expenses
include marketing fees, broker commissions, inside sales and marketing salaries
and related expenses, travel related to the Company's sales activities and an
allocation of other overhead expenses relating to the Company's sales and
marketing functions. The decrease is due to the reduction in broker commissions
directly related to the reduction in revenue, the outsourcing of a portion of
the activities previously performed by the inside sales and marketing
department, and the reduction of travel and entertainment expenditures. A
significant amount of the Company's marketing activities has been outsourced to
management consultants, National Health Enterprises, for a cost lower than the
Company incurred when performing the functions internally.
-7-
<PAGE>
Liquidity and Capital Resources
- -------------------------------
The Company had cash and cash equivalents of $560,211 and $506,305 as of
February 28, 1997 and February 29, 1996, respectively. The net increase in cash
of $53,906 during the period from February 29, 1996 to February 28, 1997
consists of a decrease in cash of $70,222 during the first three months of the
period (March 1, 1996 through May 31, 1996), and an increase in cash of $124,128
the last nine months of the period (June 1, 1996 through February 29, 1997). The
negative cash flow mentioned above is primarily associated with the software
development project for the Company's new mainframe computer. The positive cash
flow for the nine months ended February 28, 1997 is primarily due to the
collections of accounts receivable, decrease in prepaid expenses, and timing of
vendor payments. The Company is maintaining its policy of paying vendors on a
net 45 day basis, and continues to be current on all of its trade accounts
payable. Current cash on hand is expected to allow the Company to sustain
operations for at least the next twelve months.
The new sponsor added during January 1997 remits their vision administration fee
payments within the first week after the end of the month in which the revenues
are earned by the Company. The Company is currently reserving a substantial
portion of the total amount received from the new sponsor for claims payments.
This reserve is based upon historical utilization percentages. The monthly
vision administration fee revenue from the new sponsor is approximately
$140,000. The resulting amounts are included in the February 28, 1997 balance
sheet as accounts receivable and accounts payable, and account for a significant
portion of the increases to these accounts.
The Company's convertible subordinated debentures mature on December 1, 1997.
The Company is allocating the required capital to repay the debenture holders
upon maturity.
The Company's management has taken the following steps in order to sustain the
viability of the Company and continue positive cash flows: the sublease of
unused office space, thereby reducing monthly rent by approximately $10,000; the
maintenance of the appropriate level of staff, reducing monthly salary expense
and consulting fees by approximately $10,000; the temporary deferral of cash
payments made to related parties (National Health Enterprises) for consulting
services of approximately $6,000 per month, the balance of $42,000 as of
February 28, 1997 is to be repaid on an undetermined future date; and the
addition of a new sponsor, as previously discussed, replacing most of the
reduced number of cardholders caused by the loss of a major sponsor in the prior
fiscal year. The Company has also established a chiropractic benefit and is
expanding its dental network of providers to increase its marketability.
-8-
<PAGE>
PART II OTHER INFORMATION
Item 3. Defaults Upon Senior Securities
(b) The Company determined not to pay the quarterly dividend otherwise
scheduled for payment in April 1997, on shares of its Series 2
Preferred Stock. The dividend is cumulative. The arrearage is
$1,543,548 as of February 28, 1997.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are being filed with this report:
11 Statement re: Computation of Per Share Earnings
27 Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended February 28,
1997.
-9-
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
AVESIS INCORPORATED
- - - - - - - - - - - - - - - -
(Registrant)
Date: April 11, 1997 /s/ Neal A. Kempler
----------------------- ----------------------------------------
Neal A. Kempler, Vice President
and Secretary
Date: April 11, 1997 /s/ Joel H. Alperstein
----------------------- ----------------------------------------
Joel H. Alperstein, Director of Finance
(Principal Financial Officer)
- 10 -
EXHIBIT 11
CALCULATION OF EARNINGS PER COMMON SHARE
For the Quarter and Nine Months Ended February 28, 1997
<TABLE>
<CAPTION>
Primary Primary Fully Diluted Fully Diluted
Quarter Nine Months Quarter Nine Months
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
CSE's:
Common Stock 4,100,420 4,100,420 4,100,420 4,100,420
Series 2 Preferred (CSE) 970,450 970,450 970,450 970,450
Debentures (non-CSE):
# bonds 189 189 189 189
x conversion rate 200 200 200 200
-------------------------------------------------------------------
# shares under bonds outstanding 37,800 37,800 37,800 37,800
x exercise price 5 5 5 5
-------------------------------------------------------------------
= cash generated 189,000 189,000 189,000 189,000
Market price of common stock:
Average $0.1875 $0.1875
Closing $0.21875 $0.21875
# treasury shares that could be repurchased 1,008,000 1,008,000 864,000 864,000
-------------------------------------------------------------------
Incremental # shares 0 0 0 0
Warrants & options:
# options & warrants outstanding 5,380,763 5,380,763 5,380,763 5,380,763
x exercise price = cash generated 2,463,981 2,463,981 2,463,981 2,463,981
Market price of common stock:
Average $0.1875 $0.1875
Closing $0.21875 $0.21875
# treasury shares that could be repurchased 13,141,232 13,141,232 11,263,913 11,263,913
-------------------------------------------------------------------
Incremental # shares 0 0 0 0
-------------------------------------------------------------------
Total CSE 4,100,420 4,100,420 4,100,420 4,100,420
===================================================================
Debentures "if converted" 37,800 37,800
===================================================================
EARNINGS PER SHARE
Preferred Stock Excluded:
Net income (28,537) (43,779) (28,537) (43,779)
Subtract: preferred stock dividends 87,342 262,026 87,342 262,026
Add: interest expense on non-CSE debt 4,489 13,466
-------------------------------------------------------------------
(115,879) (305,805) (111,390) (292,339)
Divided by #CSEs + non-CSE debt 4,100,420 4,100,420 4,138,220 4,138,220
-------------------------------------------------------------------
EPS (0.03) (0.07) (0.03) (0.07)
===================================================================
Preferred Stock Included:
Net income (28,537) (43,779) (28,537) (43,779)
Add: interest expense on non-CSE debt 4,489 13,466
-------------------------------------------------------------------
(28,537) (43,779) (24,048) (30,313)
Divided by #CSEs + non-CSE debt 5,070,870 5,070,870 5,108,670 5,108,670
-------------------------------------------------------------------
EPS (0.01) (0.01) (0.01) (0.01)
===================================================================
</TABLE>
(Preferred Stock is antidilutive, so it is not included in EPS.)
(Debt is determined to be non-CSE due to the interest rate test.)
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial
information extracted from the Company's Form
10-QSB for the quarter ended February 28, 1997 and
is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAY-31-1997
<PERIOD-START> JUN-01-1996
<PERIOD-END> FEB-28-1997
<EXCHANGE-RATE> 1
<CASH> 560,211
<SECURITIES> 0
<RECEIVABLES> 537,934
<ALLOWANCES> (19,851)
<INVENTORY> 0
<CURRENT-ASSETS> 1,155,167
<PP&E> 1,692,561
<DEPRECIATION> (1,124,212)
<TOTAL-ASSETS> 1,908,830
<CURRENT-LIABILITIES> 924,022
<BONDS> 0
0
3,882
<COMMON> 41,004
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 1,908,830
<SALES> 0
<TOTAL-REVENUES> 3,965,818
<CGS> 0
<TOTAL-COSTS> 2,856,054
<OTHER-EXPENSES> 1,150,067
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (22,076)
<INCOME-PRETAX> (43,779)
<INCOME-TAX> 0
<INCOME-CONTINUING> (43,779)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (43,779)
<EPS-PRIMARY> (0.07)
<EPS-DILUTED> (0.07)
</TABLE>
