SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended: November 30, 1996 Commission File No. 0-15587
----------------- -------
EA Engineering, Science, and Technology, Inc.
-----------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 52-0991911
---------- ------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) identification No.)
11019 McCormick Road, Hunt Valley, Maryland 21031
-------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number including area code (410) 584-7000
---------------
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
----- -----
NUMBER OF SHARES OF REGISTRANT'S COMMON STOCK
OUTSTANDING AT JANUARY 10, 1997 6,194,500
-----------
Page 1 of 18
1
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
INDEX
Page
----
PART I - FINANCIAL INFORMATION
Consolidated Balance Sheets - Assets.................................. 4
Consolidated Balance Sheets - Liabilities and Stockholders' Equity.... 5
Consolidated Statements of Income..................................... 6
Consolidated Statements of Cash Flows................................. 7
Notes to Consolidated Financial Statements............................ 8
Management's Discussion and Analysis of Financial Condition
and Results of Operations........................................13
PART II - OTHER INFORMATION...............................................15
EXHIBIT 1
Schedule of Weighted Average Shares Outstanding.....................17
EXHIBIT 27
Financial Data Schedule.............................................18
2
<PAGE>
PART I - FINANCIAL INFORMATION
The consolidated financial statements included herein for EA Engineering,
Science, and Technology, Inc. & Subsidiaries (the "Company") have been prepared
by the Company, without audit, pursuant to the rules and regulations of the
Securities and Exchange Commission. In management's opinion, the interim
financial data presented includes all adjustments (which include only normal
recurring adjustments) necessary for a fair presentation. Certain information
and footnote disclosures normally included in the consolidated financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted pursuant to such rules and regulations. However,
the Company believes that the disclosures are adequate to understand the
information presented. It is suggested that these consolidated financial
statements be read in conjunction with the Company's August 31, 1996
consolidated financial statements and notes thereto included in the Company's
annual report on Form 10-K dated November 22, 1996.
3
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
November 30, August 31,
1996 1996
---------- ----------
<S> <C>
CURRENT ASSETS:
Cash and cash equivalents........................ $ 1,313,100 $ 1,308,600
Accounts receivable, net......................... 12,805,600 12,692,700
Costs and estimated earnings in excess of
billings on uncompleted contracts............. 11,699,100 12,482,200
Prepaid expenses and other....................... 2,484,900 1,576,900
----------- -----------
Total Current Assets.......................... 28,302,700 28,060,400
----------- -----------
PROPERTY AND EQUIPMENT, at cost:
Furniture, fixtures and equipment................ 12,981,300 12,784,500
Leasehold improvements........................... 3,602,100 3,677,800
----------- -----------
16,583,400 16,462,300
Less-Accumulated depreciation and amortization... (13,723,900) (13,337,400)
----------- -----------
Net Property and Equipment.................... 2,859,500 3,124,900
----------- -----------
OTHER ASSETS....................................... 1,606,600 2,143,200
----------- -----------
Total Assets..................................... $32,768,800 $33,328,500
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
November 30, August 31,
1996 1996
------------- ------------
<S> <C>
CURRENT LIABILITIES:
Accounts payable................................. $ 5,256,100 $ 6,061,000
Accrued expenses................................. 889,100 1,019,200
Accrued salaries, wages and benefits............. 3,734,500 3,183,400
Current portion of long-term debt................ 939,500 644,600
Billings in excess of costs and estimated
earnings on uncompleted contracts............. 1,160,000 1,197,700
----------- -----------
Total Current Liabilities..................... 11,979,200 12,105,900
LONG-TERM DEBT, net of current portion.............. 2,014,200 2,664,500
----------- -----------
Total Liabilities 13,993,400 14,770,400
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; 10,000,000 shares
authorized; 6,185,100 and 6,175,000 shares
issued and outstanding........................ 61,900 61,800
Preferred stock, $.01 par value; 8,000,000 shares
authorized; none issued....................... -- --
Capital in excess of par value................... 10,826,800 10,796,300
Retained earnings................................ 7,886,700 7,700,000
----------- -----------
Total Stockholders' Equity.................... 18,775,400 18,558,100
----------- -----------
Total Liabilities and Stockholders' Equity.. $32,768,800 $33,328,500
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<TABLE>
<CAPTION>
Three Months Ended
November 30,
-------------------------------
1996 1995
----------- -----------
<S> <C>
Total revenue...................................... $22,178,500 $22,940,100
Less - Subcontractor costs......................... (7,196,400) (5,527,100)
----------- -----------
Net revenue.................................... 14,982,100 17,413,000
----------- -----------
Operating expenses:
Direct salaries and other operating............ 13,885,400 15,622,200
General and administrative..................... 731,500 796,600
----------- -----------
Total operating expenses....................... 14,616,900 16,418,800
----------- -----------
Income from operations............................. 365,200 994,200
Interest expense................................... (68,200) (125,700)
Interest income.................................... 14,100 24,500
----------- -----------
Income before income taxes......................... 311,100 893,000
Provision for income taxes......................... 124,400 357,200
----------- -----------
Net income......................................... $ 186,700 $ 535,800
=========== ===========
Net income per share............................... $0.03 $0.09
==== =====
Weighted average shares outstanding................ 6,197,800 6,182,400
========== ==========
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three Months Ended
November 30,
-------------------------------
1996 1995
----------- -----------
<S> <C>
CASH FLOWS FROM (USED FOR) OPERATING ACTIVITIES:
Net income....................................... $ 186,700 $ 535,800
Noncash expenses included in net income
Depreciation and amortization................ 408,400 394,300
Deferred (benefit from) income taxes......... -- (100,000)
Current provision for income taxes........... 124,400 457,200
Net (increase) decrease in noncash assets -
Accounts receivable, net..................... (112,900) 2,413,700
Costs and estimated earnings in excess of
billings on uncompleted contracts.......... 783,100 (3,484,900)
Prepaid expenses and other assets............ (549,400) (33,700)
Net increase (decrease) in nondebt liabilities -
Accounts payable and accrued expenses........ (383,900) (2,739,300)
Refunds of income taxes...................... 72,600 --
Payments of income taxes..................... (19,000) (27,800)
Billings in excess of costs and estimated
earnings on uncompleted contracts.......... (37,700) (55,400)
----------- -----------
Net cash flows from (used for)operating
activities.. 472,300 (2,640,100)
----------- -----------
CASH FLOWS FROM (USED FOR) FINANCING ACTIVITIES:
Reduction of long-term debt...................... (1,285,300) (191,300)
Proceeds from issuance of long-term debt......... 929,900 --
Proceeds from issuance of common stock........... 30,600 63,700
----------- -----------
Net cash flows used for financing activities.. (324,800) (127,600)
----------- -----------
CASH FLOWS USED FOR INVESTING ACTIVITIES:
Purchase of equipment, net....................... (143,000) (253,400)
----------- -----------
Net cash flows used for investing activities.. (143,000) (253,400)
NET DECREASE IN CASH AND CASH EQUIVALENTS............ 4,500 (3,021,100)
----------- -----------
CASH AND CASH EQUIVALENTS, beginning of period....... 1,308,600 3,813,900
----------- -----------
CASH AND CASH EQUIVALENTS, end of period............. $1,313,100 $ 792,800
=========== ===========
</TABLE>
The accompanying notes are an integral part of these statements.
7
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE THREE MONTHS ENDED NOVEMBER 30, 1996 AND 1995
Note 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
Basis of Presentation--
The accompanying consolidated financial statements present the accounts of
EA Engineering, Science, and Technology, Inc. (EA) and its wholly-owned
subsidiary, EA Financial, Inc., and its wholly-owned subsidiaries, EA Global,
Inc. and EA Engineering, Science, and Technology de Mexico, S.A. de C.V. The
entities are collectively referred to herein as the "Company." All significant
intercompany transactions have been eliminated in consolidation.
Revenue Recognition--
The Company is a multidisciplinary environmental services organization
providing a wide range of consulting, engineering, remediation, and analytical
services. These services are generally performed under time and material, fixed
price, and cost plus fixed fee contracts which vary in length from one month to
ten years.
The Company accounts for contract revenues and costs under fixed price
contracts using the percentage-of-completion method. The percentage-of-
completion is determined using the "cost-to-cost" method for each contract cost
component. Under this method, direct labor and other contract costs incurred to
date are compared to periodically revised estimates of the total of each
contract cost component at contract completion to determine the percentage of
revenues to be recognized. Revenues from time and material and cost plus fixed
fee contracts are recognized currently as the work is performed. Provision for
estimated losses on uncompleted contracts, to the full extent of the loss, is
made during the period in which the Company first becomes aware that a loss on a
contract is probable.
Contract costs and estimated earnings recognized in excess of amounts billed
are classified as current assets under "costs and estimated earnings in excess
of billings on uncompleted contracts." Billings in excess of contract costs and
estimated earnings are classified as current liabilities under "billings in
excess of costs and estimated earnings on uncompleted contracts."
Generally, contracts provide for the billing of costs incurred and estimated
fees on a monthly basis. Amounts included in "costs and estimated earnings in
excess of billings on uncompleted contracts" in the accompanying financial
statements will be billed within twelve months of the balance sheet date.
Major Clients--
Various agencies of the federal government accounted for approximately 45% and
51% of the Company's net revenue for the three months ended November 30, 1996
and 1995, respectively. Additionally, various agencies of the federal government
accounted for approximately 42% of the Company's accounts receivable and costs
and estimated earnings in excess of billings on uncompleted contracts as of
November 30, 1996.
8
<PAGE>
Cash and Cash Equivalents--
Cash equivalents consist of money market instruments with a purchased
original maturity of three months or less, stated at cost, which approximates
market.
Property and Equipment--
Property and equipment are depreciated using the straight-line method over
their estimated useful lives ranging from 3 to 10 years. Leasehold improvements
are amortized over the shorter of the estimated useful life or the term of the
lease.
Segment Information--
The Company operates within one industry segment, providing a wide range of
consulting, engineering, remediation, and analytical services.
Risks and Uncertainties--
Reliance on major government contracts subjects the Company to risks
associated with public budgetary restrictions and uncertainties, discrepancies
between awarded contract amounts and actual revenues, and cancellation at the
option of the government. The Company attempts to mitigate these risks by
staffing only to meet reasonably anticipated average workloads, by using
subcontractors to handle peak workloads, and by obtaining termination benefit
contract provisions. Cancellation of any of the Company's major government
contracts, however, could have a material adverse effect on the Company.
Use of Estimates--
The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amount of assets, liabilities, revenues and
expenses in the financial statements and in the disclosures of contingent assets
and liabilities. While actual results could differ from these estimates,
management believes that actual results will not be materially different from
amounts provided in the accompanying consolidated financial statements.
Supplemental Disclosures of Cash Flow Information--
Cash paid during the three months ended November 30, 1996 and 1995 for
interest was $43,500 and $117,400, respectively. Retirements of property and
equipment for the same periods were $21,900 and $-0-, respectively.
Accounting for Income Taxes--
The Company implemented the provisions of Statement of Financial Accounting
Standards No. 109 - Accounting for Income Taxes as of September 1, 1993. The
effect of the provisions have been implemented prospectively and were not
material to the financial statements as of September 1, 1993 or to the operating
results for the year ended August 31, 1994.
Deferred income taxes are recorded to reflect the tax consequences on future
years for differences between the tax basis of assets and liabilities and their
financial reporting amounts.
9
<PAGE>
Note 2. BANK FINANCING ARRANGEMENTS:
The Company renegotiated its line of credit arrangement with a commercial
bank during the fourth quarter of fiscal 1996. In connection with the
renegotiation, the Company's borrowing facility was extended through and a due
date of January 31, 1998 was established. The facility allows for borrowings up
to $10 million, a decrease from $12.5 million. Borrowings under the extended
two-year facility are limited to a percentage of certain accounts receivable and
costs and estimated earnings in excess of billings on uncompleted contracts. The
agreement became effective June 1, 1996. During fiscal years 1997 and 1996, the
Company has either been in compliance or has obtained waivers on all covenants
related to these arrangements.
Short-term borrowings information resulting from the financing arrangements
is as follows:
Three Months Ended
November 30,
------------------
1996 1995
---- ----
Balance as of end of period.................... $ -- $ --
Maximum amount outstanding during the period... -- 5,490,900
Average outstanding month-end balance during
the period.................................. -- 492,400
Weighted average interest rate during the
period...................................... -- 8.8%
Interest rate at the end of the period......... -- 8.8%
Interest expense............................... -- $ 16,900
The weighted average interest rate has been calculated based upon the actual
daily interest expense and the daily average balance outstanding.
10
<PAGE>
Long-term debt consists of the following:
<TABLE>
<CAPTION>
November 30,
-----------------
1996 1995
---- ----
<S> <C>
Revolving credit facility payable to commercial
bank, interest charged at LIBOR plus 150 or
LIBOR plus 200, depending on certain financial
covenants, facility expires January 1998........... $1,182,400 $ --
Note payable to a commercial bank payable in
monthly installments of interest only; interest
at prime or LIBOR plus 150 basis points through
January 1997, repaid in connection with revolving
credit facility refinancing........................ -- 3,000,000
Notes payable to a commercial bank payable in equal
monthly installments of $43,650, plus interest at
250 points above LIBOR through November 1998, and
$21,400 plus interest at 250 points above LIBOR
thereafter until November 1999, secured by lease-
hold improvements and certain of EA's analytical
laboratory equipment............................... 841,400 1,606,900
Note payable to a commercial bank payable in equal
monthly installments of $29,600, plus interest at
9.1% through December 1999, secured by certain
computer equipment................................. 929,900 --
---------- ----------
Total long-term debt................................. 2,953,700 4,606,900
Less-current portion................................. (939,500) (765,500)
---------- ----------
Long-term portion.................................... $2,014,200 $3,841,400
========== ==========
</TABLE>
Note 3. NET INCOME (LOSS) PER SHARE:
Net income (loss) per share is based on the weighted average number of
shares of common stock and common stock equivalents outstanding during the
period. Common stock equivalents are calculated using the treasury stock method.
Note 4. PROFIT SHARING AND INCENTIVE PLANS:
EA maintains a defined contribution plan covering all employees who are at
least 21 years of age and have completed one year of credited service, as
defined by the plan. The plan provides for discretionary employer contributions
for each fiscal year, in amounts determined annually by the Board of Directors.
The plan also includes a 401(k) provision, allowing for Company matching
contributions.
Note 5. STOCK OPTION AND EMPLOYEE STOCK PURCHASE PLANS:
The Company maintains a Stock Option Plan (the Plan), which provides for the
grant of nonqualified stock options and incentive stock options to certain key
employees and officers of the Company. The exercise price of an option granted
11
<PAGE>
under the Plan may not be less than the fair market value of the underlying
shares of Common Stock on the date of the grant. A total of 193,000 options are
issued and outstanding as of November 30, 1996 having an average exercise price
of $4.13. There are 409,500 options available for issuance as of November 30,
1996.
The Company maintains an Employee Stock Purchase Plan to provide eligible
employees with the opportunity to purchase shares of the Company's Common Stock
through voluntary payroll deductions. Under the Plan, eligible employees may
purchase shares through monthly payroll deductions at 95% of current market
value at the time of purchase. The Company pays all administrative expenses
related to employee purchases. A total of 188,100 shares remain authorized for
distribution under the Plan as of November 30, 1996.
The Company maintains two Non-Employee Director Stock Option Plans (1993 and
1995) which provide for the granting of nonqualified stock options to its three
non-employee directors. The exercise price of the 30,000 options, which were
outstanding as of November 30, 1996 ranged between $2.45 and $6.13, which
equaled the fair market value at the dates of grant. A total of 38,500 options
remain reserved for the Director Stock Option Plans as of November 30, 1996.
12
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The Company's results of operations are significantly affected by the timing
of the award of contracts, the timing of performance on contracts, and the
extent to which the Company's employees are performing billable tasks as opposed
to engaging in preparing bid proposals and other required non-billable
activities. Due to these factors, the results of operations for interim periods
are not necessarily indicative of the results of operations for longer periods
and interim period comparisons may not be as meaningful as comparisons over
longer periods.
Three Months Ended November 30, 1996
Net revenue for the three months ended November 30, 1996 was $14,982,100, a
decrease of 14% from $17,413,000 for the same period in 1996. The decrease was
attributable to lower contract volume associated with the Department of Defense
activities, partially offset by increases in Industrial, State and Local
Government, Federal Non-DOD agency activities, and increased recovery of General
and Administrative expenses and fees on subcontracted work.
Direct salaries and other operating costs decreased to $13,885,400 from
$15,622,200, representing 92.7% and 89.7% of net revenue for the three months
ended November 30, 1996 and 1995, respectively. As a percentage of net revenue,
the increase was attributable to decreased staff utilization, and increased
information systems costs.
General, and administrative costs decreased to $731,500 from $796,600. The
decrease in costs was related to the reduction of administrative staff quarter
to quarter.
As a result of the above factors, income from operations for the three months
ended November 30, 1996 and 1995 decreased 63.3% to $365,200 from $994,200
representing 2.4% and 5.7% of net revenue. Interest expense, net, decreased
$47,100 for the three months ended November 30, 1996, compared to the prior
year. The net decrease in interest expense is primarily the result of decreasing
long-term debt principal balances, partially offset by increased short-term
borrowings to fund federal subcontracting payment requirements on certain
contracts.
The provision for income taxes was $124,400 and $357,200 for the three months
ended November 30, 1996 and 1995, respectively, representing effective rates of
40% for both years.
Net income was $186,700 for the three months ended November 30, 1996,
compared to $535,800 for the three months ended November 30, 1995.
Liquidity and Capital Resources
Cash and cash equivalents (cash) increased by $4,500 for the three months
ended November 30, 1996. The increase principally resulted from decreases in
costs and estimated earnings in excess of billings on uncompleted contracts,
proceeds from
13
<PAGE>
issuance of long-term debt, and income tax refunds. This increase was partially
offset by debt repayments, increases in accounts receivable and prepaid
expenses, and depreciation and amortization.
The Company's capital expenditures, consisting primarily of purchases of
equipment and leasehold improvements, were approximately $143,000 and $253,400
for the three months ended November 30, 1996 and 1995, respectively.
At November 30, 1996, the Company had outstanding long-term debt, including
current portion, of $2,953,700. This represents a net decrease of $355,400 from
the $3,309,100 balance at August 31, 1996. The decrease is the result of net
repayments of $1,094,000 for its revolving line of credit and $191,300 for
equipment loans, offset by new borrowings of $929,900 for computer equipment.
The Company's existing funds, cash from operations, and the available portion
of its $10,000,000 credit arrangement are expected to be sufficient to meet the
Company's present cash needs. The Company also has access to certain capital
equipment financing arrangements through various equipment suppliers. The
Company also believes it has the ability to raise capital through public or
private placement of debt and will pursue such options as the need arises to
expand business services, facilities, or acquire equipment in conjunction with a
review of the most cost effective means for the Company and its stockholders.
While the Company believes that there is sufficient market demand to absorb
the additional contracting capacity resulting from its continued expansion,
there can be no assurance that this demand will exist or continue. Although the
Company has the ability to reduce its professional staff in periods of reduced
demand, it may choose not to make full reductions in such periods, with
resulting adverse effects on operations.
14
<PAGE>
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC. & SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6
(a) Exhibits
None
(b) Reports on Form 8-K
None
15
<PAGE>
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.
EA Engineering, Science, and
Technology, Inc. & Subsidiaries
-------------------------------
(Registrant)
January 13, 1997 By: /s/ Loren D. Jensen
- ----------------- -------------------------------
(Signature)
Loren D. Jensen
-------------------------------
Chairman, President, and
Chief Executive Officer
-------------------------------
(Title)
January 13, 1997 By: /s/ Joseph A. Spadaro
- ----------------- -------------------------------
(Signature)
Joseph A. Spadaro
-------------------------------
Executive Vice President,
Chief Financial Officer
-------------------------------
(Title)
16
EXHIBIT 1
EA ENGINEERING, SCIENCE, AND TECHNOLOGY, INC.
SCHEDULE OF WEIGHTED AVERAGE SHARES OUTSTANDING
Three Months Ended
November 30,
-------------------------
1996 1995
--------- ---------
Weighted average shares of common stock............ 6,185,100 6,103,100
Impact of dilutive stock options
as of November 30, 1996 and 1995,
respectively....................................... 12,700 79,300
--------- ---------
Weighted average shares of common stock............ 6,197,800 6,182,400
========= =========
17
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> AUG-31-1997
<PERIOD-START> SEP-01-1996
<PERIOD-END> NOV-30-1996
<CASH> 1,313,100
<SECURITIES> 0
<RECEIVABLES> 12,805,600
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 28,302,700
<PP&E> 16,583,400
<DEPRECIATION> 13,723,900
<TOTAL-ASSETS> 32,768,800
<CURRENT-LIABILITIES> 11,979,200
<BONDS> 0
0
0
<COMMON> 62,100
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 32,768,800
<SALES> 22,178,500
<TOTAL-REVENUES> 22,178,500
<CGS> 13,885,400
<TOTAL-COSTS> 14,616,900
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 54,100
<INCOME-PRETAX> 311,100
<INCOME-TAX> 124,400
<INCOME-CONTINUING> 124,400
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 186,700
<EPS-PRIMARY> $0.03
<EPS-DILUTED> $0.03
</TABLE>