<PAGE> 1
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1998
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 1-11698
KCS ENERGY, INC.
(Exact name of registrant as specified in its charter)
Delaware 22-2889587
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
379 Thornall Street, Edison, New Jersey 08837
(Address of principal executive offices) (Zip Code)
(732) 632-1770
(Registrant's telephone number, including area code)
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 twelve 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.
(1) /X/ Yes (2) No
------- --------
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, $0.01 par value: 29,579,954 shares outstanding as of July
31, 1998.
1
<PAGE> 2
KCS ENERGY, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
(Amounts in thousands except -------------------------- --------------------------
per share data) Unaudited 1998 1997 1998 1997
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Oil and gas revenue $ 32,157 $ 30,589 $ 61,863 $ 69,823
Other revenue, net 1,506 1,962 3,109 2,607
--------- --------- --------- ---------
Total revenue 33,663 32,551 64,972 72,430
Operating costs and expenses
Lease operating expenses 7,642 7,011 14,918 13,699
Production taxes 1,008 1,312 2,058 3,086
General and administrative expenses 2,993 2,289 5,592 5,338
Depreciation, depletion and amortization 15,547 13,914 28,375 28,565
Writedown of oil and gas properties 57,631 -- 57,631 --
--------- --------- --------- ---------
Total operating costs and expenses 84,821 24,526 108,574 50,688
--------- --------- --------- ---------
Operating income (loss) (51,158) 8,025 (43,602) 21,742
Interest and other income, net 101 119 199 230
Interest expense (8,925) (4,536) (16,802) (9,798)
--------- --------- --------- ---------
Income (loss) from continuing operations (59,982) 3,608 (60,205) 12,174
before income taxes
Federal and state income taxes (benefit) (21,105) 1,316 (21,188) 4,477
--------- --------- --------- ---------
Income (loss) from continuing operations (38,877) 2,292 (39,017) 7,697
Discontinued operations
Net loss from operations -- -- -- (72)
Net gain on disposition -- -- -- 5,461
--------- --------- --------- ---------
Net income (loss) $ (38,877) $ 2,292 $ (39,017) $ 13,086
========= ========= ========= =========
Basic and diluted earnings (loss) per share
of common stock
Continuing operations $ (1.32) $ 0.08 $ (1.32) $ 0.27
Discontinued operations -- -- -- 0.19
--------- --------- --------- ---------
$ (1.32) $ 0.08 $ (1.32) $ 0.46
========= ========= ========= =========
Weighted average shares outstanding 29,480 29,272 29,461 28,311
========= ========= ========= =========
</TABLE>
The accompanying notes to condensed consolidated financial statements are an
integral part of these statements.
2
<PAGE> 3
KCS ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
(Dollars in thousands except June 30, December 31,
per share data) Unaudited 1998 1997
--------- ---------
<S> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 6,227 $ 4,802
Trade accounts receivable, net 29,927 40,115
Other current assets 6,175 6,752
--------- ---------
Current assets 42,329 51,669
--------- ---------
Oil and gas properties, full cost method, net 431,565 403,754
Other property, plant and equipment, net 23,542 22,579
--------- ---------
Property, plant and equipment, net 455,107 426,333
--------- ---------
Deferred taxes and other assets 48,916 24,412
--------- ---------
$ 546,352 $ 502,414
========= =========
Liabilities and stockholders' equity
Current liabilities
Accounts payable $ 24,744 $ 39,500
Accrued liabilities 21,242 24,524
--------- ---------
Current liabilities 45,986 64,024
--------- ---------
Deferred credits and other liabilities 875 875
--------- ---------
Long-term debt 393,890 292,445
--------- ---------
Stockholders' equity
Common stock, par value $0.01 per
share - authorized 50,000,000
shares, issued 31,386,450 and
31,229,890, respectively 314 312
Additional paid-in capital 144,861 144,135
Retained earnings (36,186) 4,011
Less treasury stock, 1,801,496 shares, at cost (3,388) (3,388)
--------- ---------
Total stockholders' equity 105,601 145,070
--------- ---------
$ 546,352 $ 502,414
========= =========
</TABLE>
The accompanying notes to condensed consolidated financial statements are an
integral part of these statements.
3
<PAGE> 4
KCS ENERGY, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
<TABLE>
<CAPTION>
Six Months Ended
June 30,
--------------------------
(Dollars in thousands) Unaudited 1998 1997
--------- ---------
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ (39,017) $ 13,086
Non-cash charges (credits):
Depreciation, depletion and amortization 28,375 28,565
Writedown of oil and gas properties 57,631 --
Gain on sale of discontinued operations -- (5,461)
Deferred income taxes (21,361) 3,834
Other non-cash charges and credits, net 1,046 876
--------- ---------
26,674 40,900
Net changes in assets and liabilities:
Trade accounts receivable 10,188 36,682
Accounts payable and accrued liabilities (18,037) (37,504)
Other, net 190 5,505
--------- ---------
Net cash provided by operating activities 19,015 45,583
--------- ---------
Cash flows from investing activities:
Investment in oil and gas properties (117,494) (85,436)
Proceeds from the sale of pipeline assets -- 27,907
Proceeds from the sale of oil and gas properties 4,815 3,712
Other capital expenditures, net (2,101) (1,274)
--------- ---------
Net cash used in investing activities (114,780) (55,091)
--------- ---------
Cash flows from financing activities:
Proceeds from debt 229,100 49,100
Repayments of debt (127,700) (151,991)
Proceeds from issuance of common stock 728 112,898
Deferred financing costs (3,760) (169)
Other, net (1,178) (887)
--------- ---------
Net cash provided by financing activities 97,190 8,951
--------- ---------
Net increase (decrease) in cash and cash equivalents 1,425 (557)
Cash and cash equivalents at beginning of period 4,802 5,100
--------- ---------
Cash and cash equivalents at end of period $ 6,227 $ 4,543
========= =========
</TABLE>
The accompanying notes to condensed consolidated financial statements are an
integral part of these statements.
4
<PAGE> 5
KCS ENERGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. The condensed interim financial statements included herein have been prepared
by KCS Energy, Inc. (KCS or Company), without audit, pursuant to the rules and
regulations of the Securities and Exchange Commission (SEC) and reflect all
adjustments which are of a normal recurring nature and which, in the opinion of
management, are necessary for a fair statement of the results for interim
periods. Certain information and footnote disclosures have been condensed or
omitted pursuant to such rules and regulations. Although KCS believes that the
disclosures are adequate to make the information presented not misleading, it is
suggested that these condensed financial statements be read in conjunction with
the financial statements and the notes thereto included in the Company's latest
annual report to stockholders. Certain previously reported amounts have been
reclassified to conform with current year presentations.
2. In January 1998, the Company completed a public offering of $125 million
senior subordinated notes at an interest rate of 8.875% due January 15, 2008.
The net proceeds of approximately $121 million were used to pay down borrowings
under the Company's bank credit facilities.
3. Basic earnings per share were computed by dividing net income by the average
number of common shares outstanding during the quarter and six-month period as
required by FASB Statement No. 128, "Earnings per Share" ("SFAS 128"). Diluted
earnings per share have been computed by dividing net income by the average
number of common shares outstanding plus the incremental shares that would have
been outstanding assuming the exercise of stock options and stock warrants as
applicable. A reconciliation of shares used for basic earnings per share and
those used for diluted earnings per share is as follows:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- --------------------
1998 1997 1998 1997
------ ------ ------ ------
(amounts in thousands) (amounts in thousands)
<S> <C> <C> <C> <C>
Average common stock outstanding 29,480 29,272 29,461 28,311
Average common stock equivalents 325 454 353 462
------ ------ ------ ------
Average common stock and common
stock equivalents outstanding 29,805 29,726 29,814 28,773
====== ====== ====== ======
</TABLE>
4. Supplemental cash flow information. The Company considers all highly liquid
debt instruments with a maturity of three months or less when purchased to be
cash equivalents. For the six months ended June 30, 1998 interest payments were
$11.2 million compared to $10.6 million for the six months ended June 30, 1997.
Income tax payments were $0.3 million and $0.5 million for the six month periods
ended June 30, 1998 and 1997, respectively.
5
<PAGE> 6
KCS ENERGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
5. During the first quarter of 1997, the Board of Directors approved a plan to
discontinue the Company's natural gas transportation and third-party gas
marketing operations in order to focus on the core oil and gas exploration and
production operations. As of June 30, 1997, the Company sold its Texas
intrastate natural gas pipeline system, together with related marketing assets
and a joint venture gathering system, realizing proceeds of approximately $28
million and an after-tax gain of $5.5 million. Accordingly, the results of the
transportation and marketing operations have been classified as discontinued
operations in 1997. The summarized results of these operations for the six
months ended June 30, 1997 were as follows: revenue $22.0 million, net loss from
operations of $0.1 million and net gain on disposal of $5.5 million. The gain on
disposal included a $1.1 million pretax ($0.7 million after-tax) provision for
estimated losses during the wind-down period. By December 31, 1997, all assets
of the discontinued operations were disposed of.
6. In June 1998, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 133, "Accounting for Derivative Instruments
and Hedging Activities" ("SFAS 133"). SFAS 133 establishes accounting and
reporting standards requiring that every derivative instrument (including
certain derivative instruments embedded in other contracts) be recorded in the
balance sheet as either an asset or liability measured at its fair value. SFAS
133 requires that changes in the derivative's fair value be recognized currently
in earnings unless specific hedge accounting criteria are met. Special
accounting for qualifying hedges allows a derivative's gains and losses to
offset related results on the hedged item in the income statement, and requires
that a company must formally document, designate, and assess the effectiveness
of transactions that receive hedge accounting.
SFAS 133 is effective for the Company in the first quarter of 2000. The
Company has not yet quantified the impacts of adoption of SFAS 133 in its
financial statements and has not determined the timing of or method of the
adoption. SFAS 133 must be applied to (a) derivative instruments and (b) certain
derivative instruments embedded in hybrid contracts that were issued, acquired,
or substantively modified after December 31, 1997.
6
<PAGE> 7
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
The following discussion focuses on material changes in results of
operations for the three and six months ended June 30, 1998, compared to the
three and six months ended June 30, 1997, and in financial condition since
December 31, 1997. All references in the following discussion related to
earnings per share relate to the Company's basic earnings per share.
Results of Operations
Net loss for the three months ended June 30, 1998 was $38.9 million,
or $1.32 per share, compared to net income of $2.3 million, or $0.08 per share,
for the same period last year. The loss in the 1998 quarter resulted primarily
from a non-cash writedown of oil and gas properties of $57.6 million ($37.5
million after tax). Excluding the effect of this non-cash writedown, the net
loss was $1.4 million or $0.05 per share reflecting substantially lower oil
prices, higher interest costs and a higher depletion rate compared to the same
period a year ago which more than offset the benefits of higher production
levels.
Net loss for the six months ended June 30, 1998 was $39.0 million, or
$1.32 per share, compared to income from continuing operations of $7.7 million,
or $0.27 per share for the same period last year. The prior year six-month
period also included net income of $5.4 million, or $0.19 per share, from
discontinued operations.
While the depressed oil and gas price environment in 1998 impacted
all of the Company's operations, the Rocky Mountain operations were impacted
the most. Realized oil prices in this region averaged $8.16 per barrel for the
current quarter, reprsenting a 40% decline when compared to those of the same
period last year. These lower prices, combined with high unit production costs
at the current production levels, have resulted in operating losses for the
Rocky Mountain operations of $1.7 million and $2.4 million for the quarter and
six months ended June 30, 1998, respectively. During the latter part of the
second quarter of 1998, the Company curtailed its capital spending program in
this area and implemented a cost reduction plan which should enable these
operations to significantly reduce operating and administrative expenses and to
break even on a cash basis. In the meantime, the Company will continue to
evaluate how best to proceed with the development of the Manderson Field and
its multiple reservoirs.
7
<PAGE> 8
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Revenue
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ----------------------
1998 1997 1998 1997
------- ------- ------- -------
<S> <C> <C> <C> <C>
Production:
Oil (Mbbl) 489 427 857 882
Liquids (Mbbl) 35 28 56 70
Gas (MMcf) 12,312 10,920 23,637 22,159
Total (MMcfe) 15,453 13,648 29,112 27,872
Average Price:
Oil (per bbl) $ 10.82 $ 17.89 $ 11.86 $ 19.60
Liquids (per bbl) 5.48 10.73 6.77 11.76
Gas (per Mcf) 2.17 2.07 2.17 2.33
Total (per Mcfe) 2.08 2.24 2.13 2.51
Revenue:
Oil $ 5,287 $ 7,637 $10,161 $17,289
Liquids 192 299 377 827
Gas 26,678 22,653 51,325 51,707
------- ------- ------- -------
Total $32,157 $30,589 $61,863 $69,823
======= ======= ======= =======
</TABLE>
Gas revenue. For the three months ended June 30, 1998, gas revenue
increased $4.0 million to $26.7 million. Of this increase $3.0 million was due
to a 13% increase in production with the remainder attributable to a 4% increase
in average realized gas prices.
For the six months ended June 30, 1998, gas revenue decreased $0.4
million to $51.3 million. A 7% decrease in average realized gas prices resulted
in lower revenue of $3.6 million which more than offset a 7% increase in
production.
Oil and liquids revenue. For the three months ended June 30, 1998, oil
and liquids revenue was $5.5 million, compared to $7.9 million during the 1997
period. Of this decrease, $3.1 million was attributable to significantly lower
average realized oil and liquids prices. Average realized oil prices during the
current year three-month period were $10.82, or 40% lower than the same period
last year. This was partially offset by a 15% increase in oil and liquids
production.
For the six months ended June 30, 1998, oil and liquids revenue
decreased $7.6 million to $10.5 million compared to the same period in 1997
primarily due to lower prices.
Prices for oil and gas are subject to wide fluctuations in response to
relatively minor changes in the supply of and demand for oil and gas, market
uncertainty and a variety of additional factors that are
8
<PAGE> 9
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
beyond the Company's control. These factors include political conditions in the
Middle East and elsewhere, domestic and foreign supply of oil and gas, the level
of consumer demand, weather conditions and overall economic conditions.
Other revenue, net
Other revenue includes $1.1 million for the three months ended and $2.2
million for the six months ended June 30, 1998 related to severance tax refunds.
In 1997, other revenue was mainly due to a $1.3 million settlement of a gas
contract dispute recorded in the second quarter.
Lease operating expenses
Lease operating expenses increased $0.6 million to $7.6 million and
$1.2 million to $14.9 million for the three and six months ended June 30, 1998,
respectively, compared to the same periods a year ago. These increases were
primarily attributable to activity in the Rocky Mountain region.
Production taxes
Production taxes, which are generally levied based upon a percentage
of revenue, decreased $0.3 million to $1.0 million for the second quarter of
1998 and $1.0 million to $2.1 million for the six months ended June 30, 1998,
compared to the same periods in 1997.
General and administrative expenses
General and administrative expenses increased $0.7 million to $3.0
million and $0.3 million to $5.6 million for the three and six months ended June
30, 1998, respectively, compared to the same periods in 1997. These increases
were largely as a result of the expansion of the Company's volumetric production
payment program (VPP) and higher costs associated with the Rocky Mountain
operations.
Depreciation, depletion and amortization
The Company provides for depletion on its oil and gas properties
using the future gross revenue method, whereby the depletion rate is calculated
as a percentage of amortizable oil and gas properties to future gross revenue
based on recoverable reserves valued at current prices. During the three months
ended June 30, 1998, DD&A on the Company's oil and gas properties increased
$1.6 million due primarily to a higher DD&A rate in the 1998 quarter. The DD&A
rate increased to 46% of revenue in the current year three-month period,
compared to 44% during the same period a year ago. The increase in the rate
reflects the lower energy prices in 1998.
For the six months ended June 30, 1998, DD&A on the Company's oil and
gas properties decreased $0.2 million as compared to the similar period in 1997.
This decrease was primarily due to lower oil and gas revenues partially offset
by a higher depletion rate in the current year.
Writedown of Oil and Gas Properties
At June 30, 1998, the Company, in accordance with the full cost
accounting method and procedures prescribed by the SEC, recorded a $57.6
million ($37.5 million after tax) non-cash writedown of its oil and gas
properties. Under the SEC
9
<PAGE> 10
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
accounting procedures, capitalized oil and gas property costs are limited to
the present value of future net revenues from estimated production of proved
oil and gas reserves at end of period prices, discounted at 10%, plus the
historical cost of unproved properties ("SEC PV10 value"). To the extent that
the capitalized costs exceed the estimated SEC PV 10 value at the end of any
fiscal quarter, such excess costs are written down with a corresponding charge
to income. The decrease in the June 30, 1998 SEC PV 10 value was primarily
attributable to the impact of significantly lower period end oil and gas
prices.
Further price declines, if not offset by increases in proved oil and
gas reserves, could result in future ceiling writedowns.
Interest expense
Interest expense was $8.9 million during the second quarter of 1998
compared to $4.5 million for the same period last year. For the six months ended
June 30, 1998 interest expense was $16.8 million compared to $9.8 million. The
increases during the 1998 periods reflect higher average borrowings during the
1998 period due to the expansion of the Company's oil and gas operations.
Liquidity and Capital Resources
Cash flow from operating activities
Net income adjusted for non-cash charges decreased $14.2 million to
$26.7 million for the six months ended June 30, 1998, compared to $40.9 million
during the same period in 1997 mainly due to the impact of lower oil and gas
prices on oil and gas revenue and additional interest costs related to
incremental borrowings. Net cash provided by operating activities was $19.0
million during the current year six-month period, compared to $45.6 million for
the six months ended June 30, 1997. In addition to the effect of lower energy
prices, the 1998 six-month period was impacted by the timing of cash receipts
and payments which were generally at a lower level in 1998 due to the
discontinuation of the Company's natural gas transporation and marketing
operations in 1997.
Investing activities
Capital expenditures on oil and gas properties for the six months
ended June 30, 1998 were $117.5 million of which $47.9 million was for
development drilling, $60.5 million for the acquisition of proved reserves
primarily under the Company's VPP program and $9.1 million was for lease
acquisitions, seismic surveys and exploratory drilling.
The remainder of the Company's 1998 capital spending budget of
approximately $40 million is expected to be funded by cash flow from
operations. The sale of non-strategic oil and gas properties which are located
outside of the Company's primary operating fields is being explored and could
be an additional source of cash.
Financing Activities
On January 15, 1998, the Company completed a public offering of $125
million senior subordinated notes at an interest rate of 8.875% due January 15,
2008. The net proceeds of approximately $121 million were used to pay down
borrowings under the Company's bank credit facilities.
10
<PAGE> 11
KCS ENERGY, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
At June 30, 1998, the Company had $45.7 million of availability under
its bank credit facilities. In July, 1998 the availability was increased by $10
million following the completion of a borrowing base review by the lenders. The
borrowing base is a function of the lenders' determination of the loan value of
the underlying oil and gas properties.
Forward-Looking Statements
The information discussed in this Form 10-Q includes "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933, as
amended (the "Securities Act"), and Section 21E of the Securities Exchange Act
of 1934, as amended (the "Exchange Act"). All statements other than statements
of historical facts included herein regarding planned capital expenditures, the
Company's financial position and future operations, are forward-looking
statements. Although the Company believes that the expectations reflected in
such forward-looking statements are reasonable, they do involve certain
assumptions, risks and uncertainties, and the Company can give no assurance that
such expectations will prove to have been correct. The Company's actual results
could differ materially from those anticipated in these forward-looking
statements as a result of certain factors, including the timing and success of
the Company's drilling activities, the volatility of prices and supply and
demand for oil and gas, the numerous uncertainties inherent in estimating
quantities of oil and gas reserves and actual future production rates and
associated costs, the usual hazards associated with the oil and gas industry
(including blowouts, cratering, pipe failure, spills, explosions and other
unforeseen hazards), and increases in regulatory requirements.
All forward-looking statements attributable to the Company or persons
acting on its behalf are expressly qualified in their entirety by such factors.
11
<PAGE> 12
KCS ENERGY, INC. - FORM 10-Q
PART II - OTHER INFORMATION
Item 1. Legal Proceedings.
Reference is made to Item 3, Legal Proceedings, in the Company's Annual
Report on Form 10-K/A for the year ended December 31, 1997.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits:
Exhibit 27 - Financial Data Schedule.
(b) Reports on Form 8-K.
There were no reports on Form 8-K filed during the three
months ended June 30, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KCS ENERGY, INC.
August 14, 1998 /S/ PAUL S. SAMETT
--------------- -------------------
Paul S. Samett
Senior Vice President and
Chief Financial Officer
August 14, 1998 /S/ FREDERICK DWYER
--------------- -------------------
Frederick Dwyer
Vice President, Controller
and Secretary
12
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> JUN-30-1998
<CASH> 6,227
<SECURITIES> 0
<RECEIVABLES> 29,927
<ALLOWANCES> 0
<INVENTORY> 1,843
<CURRENT-ASSETS> 42,329
<PP&E> 901,397
<DEPRECIATION> 446,290
<TOTAL-ASSETS> 546,352
<CURRENT-LIABILITIES> 45,986
<BONDS> 0
0
0
<COMMON> 314
<OTHER-SE> 105,287
<TOTAL-LIABILITY-AND-EQUITY> 546,352
<SALES> 64,972
<TOTAL-REVENUES> 0
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 108,574
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 16,802
<INCOME-PRETAX> (60,205)
<INCOME-TAX> (21,188)
<INCOME-CONTINUING> (39,017)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (39,017)
<EPS-PRIMARY> (1.32)
<EPS-DILUTED> (1.32)
</TABLE>
