UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark one)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1997
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE
SECURITIES EXCHANGE ACT OF 1934
Commission File Number: 0-18643
LUNAR CORPORATION
(Exact name of registrant as specified in its
charter)
Wisconsin 3845
39-1200501
(State of (Primary Standard Industry
(IRS Employer
Incorporation) Classification Code Number)
Identification No.)
313 West Beltline Highway
Madison, Wisconsin 53713
608-274-2663
(Address, including zip code, and telephone number,
including area code,
of Registrant's principal executive offices)
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
As of April 30, 1997, 8,715,100 shares of the registrant's Common
Stock, $0.01
par value, were outstanding.
LUNAR CORPORATION AND SUBSIDIARIES
FORM 10-Q
For the quarterly period ended March 31, 1997
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Page
Item 1. Financial statements
Consolidated Balance Sheets
March 31, 1997, and June 30, 1996. . . . . . . . . . .
. . . . . . .3
Consolidated Statements of Income
Three and Nine Months Ended March 31, 1997
and 1996 . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . .5
Consolidated Statements of Cash Flows
Nine Months Ended March 31, 1997
and 1996 . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . .6
Notes to Consolidated Financial Statements . . . . . .
. . . . . . .7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . . . . . . .
. . . . . . .9
PART II - OTHER INFORMATION. . . . . . . . . . . . . . . . . . .
. . . . . . 11
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 13
EXHIBIT INDEX. . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . 14
PART 1. FINANCIAL INFORMATION
ITEM 1. Financial Statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
- - -------------------------------------------------------------------------------
Assets
- - -------------------------------------------------------------------------------
March 31,
June 30,
1997
1996
(Unaudited)
(Audited)
- - -------------------------------------------------------------------------------
Current assets:
Cash and cash equivalents $7,192,819 $
8,001,582
Marketable securities 5,122,305
2,347,400
Accounts receivable:
Trade, less allowance for doubtful accounts
of $2,709,000 at March 31, 1997
and $2,235,000 at June 30, 1996 25,049,831
27,966,620
Other 720,529
328,662
- - -------------------------------------------------------------------------------
25,770,360
28,295,282
Inventories 10,623,067
8,675,487
Deferred income taxes 2,250,000
1,984,000
Other 220,384
161,829
- - -------------------------------------------------------------------------------
Total current assets 51,178,935
49,465,580
Property, plant and equipment--at cost:
Buildings and improvements 2,354,074
2,203,036
Furniture and fixtures 700,165
669,284
Machinery and other equipment 4,692,970
3,554,535
- - -------------------------------------------------------------------------------
7,747,209
6,426,855
Less accumulated depreciation
and amortization 3,676,930
2,977,468
- - -------------------------------------------------------------------------------
4,070,279
3,449,387
Land 138,858
138,858
- - -------------------------------------------------------------------------------
4,209,137
3,588,245
Long-term trade accounts receivable 3,963,225
7,658,079
Long-term marketable securities 17,499,171
1,028,088
Patent fees and other intangibles,
net of accumulated amortization of
$1,097,353 at March 31, 1997 and
$832,573 at June 30, 1996 898,310
990,382
Other 136,044
141,556
- - -------------------------------------------------------------------------------
$77,884,822
$62,871,930
===============================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
- - -------------------------------------------------------------------------------
Liabilities and Shareholders' Equity
- - -------------------------------------------------------------------------------
March 31,
June 30,
1997
1996
(Unaudited)
(Audited)
- - -------------------------------------------------------------------------------
Current liabilities:
Accounts payable $ 2,621,964 $
3,508,804
Customer advances and deferred income 700,066
565,364
Income taxes payable 1,674,524
551,852
Accrued liabilities:
Commission payable 2,292,984
2,502,323
Compensation payable 500,717
205,236
Property, payroll, and other taxes 169,592
331,139
Accrued warranty and installation expenses 3,124,000
2,570,000
Other 213,011
231,809
- - -------------------------------------------------------------------------------
Total current liabilities 11,296,858
10,466,527
Shareholders' equity:
Common stock--authorized 25,000,000 shares
of $.01 par value; issued and outstanding
8,714,350 shares at March 31, 1997 and
8,486,250 at June 30, 1996 87,143
84,863
Capital in excess of par value 26,417,170
22,802,103
- - -------------------------------------------------------------------------------
26,504,313
22,886,966
Retained earnings 40,143,848
29,420,314
Unrealized appreciation (depreciation)
in marketable securities (49,485)
29,122
Cumulative translation adjustment (10,712)
69,001
- - -------------------------------------------------------------------------------
66,587,964
52,405,403
- - -------------------------------------------------------------------------------
$77,884,822
$62,871,930
===============================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
- - -------------------------------------------------------------------------------
Three months ended Nine months
ended
March 31, March 31, March 31,
March 31,
1997 1996 1997
1996
- - -------------------------------------------------------------------------------
REVENUES $19,857,329 $17,287,382 $59,288,064
$46,581,656
- - -------------------------------------------------------------------------------
OPERATING EXPENSES
Cost of sales 8,739,673 7,881,762 26,148,882
20,933,828
Research and development 1,429,756 1,489,424 4,014,633
4,360,856
Selling and marketing 4,118,381 3,606,054 12,492,401
9,944,953
General and administrative 1,305,755 835,945 3,793,518
3,717,517
- - -------------------------------------------------------------------------------
15,593,565 13,813,185 46,449,434
38,957,154
- - -------------------------------------------------------------------------------
Earnings from operations 4,263,764 3,474,197 12,838,630
7,624,502
- - -------------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
Interest income 356,366 409,877 1,064,213
1,194,127
Settlement of lawsuit - - 1,828,905
-
Other 267,954 (121,785) 482,786
(209,654)
- - -------------------------------------------------------------------------------
624,320 288,092 3,375,904
984,473
- - -------------------------------------------------------------------------------
Earnings before provision
for income taxes 4,888,084 3,762,289 16,214,534
8,608,975
Provision for income taxes 1,611,000 1,174,000 5,491,000
2,449,156
- - -------------------------------------------------------------------------------
NET INCOME $ 3,277,084 $ 2,588,289 $10,723,534 $
6,159,819
===============================================================================
Net income per common and
common-equivalent share $0.36 $0.29 $1.18
$0.70
===============================================================================
Weighted average number of
common and common-equivalent
shares 9,163,529 8,999,794 9,103,341
8,854,880
===============================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Unaudited)
- - -------------------------------------------------------------------------------
Nine months ended
March 31,
March 31,
1997
1996
- - -------------------------------------------------------------------------------
Cash flows from operating activities:
Net income $10,723,534
$6,159,819
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation and amortization 1,024,620
1,101,992
Minority interest in subsidiary -
87,091
Changes in assets and liabilities:
Receivables 6,225,288
(7,436,166)
Inventories (1,947,580)
(3,078,610)
Prepaid expenses (58,555)
(155,075)
Deferred income taxes (266,000)
(449,000)
Accounts payable (966,553)
96,277
Customer advances and deferred income 134,702
42,357
Accrued liabilities 459,797
803,041
Income taxes payable 1,122,672
(1,043,444)
- - -------------------------------------------------------------------------------
Net cash provided by (used in)
operating activities 16,451,925
(3,871,718)
- - -------------------------------------------------------------------------------
Cash flows from investing activities:
Purchases of marketable securities (20,236,573)
-
Maturities of marketable securities 851,600
7,869,100
Additions to property, plant and equipment (1,320,354)
(497,804)
Patent fees (172,708)
(234,877)
- - -------------------------------------------------------------------------------
Net cash provided by (used in) investing activities (20,878,035)
7,136,419
- - -------------------------------------------------------------------------------
Cash flows from financing activities:
Proceeds from exercise of stock options 1,148,818
1,105,766
Income tax benefit from stock option exercises 2,468,529
2,903,100
- - -------------------------------------------------------------------------------
Net cash provided by financing activities 3,617,347
4,008,866
- - -------------------------------------------------------------------------------
Net increase in cash and cash equivalents (808,763)
7,273,567
Cash and cash equivalents at beginning of period 8,001,582
2,577,655
- - -------------------------------------------------------------------------------
Cash and cash equivalents at end of period $ 7,192,819
$ 9,851,222
===============================================================================
Supplemental disclosure of cash flow information:
Income taxes paid $ 2,404,859
$ 1,033,398
===============================================================================
See accompanying notes to consolidated financial statements
LUNAR CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(1) BASIS OF PRESENTATION
The consolidated financial statements of Lunar Corporation
(the "Company")
presented herein, without audit except for balance sheet
information at June
30, 1996, have been prepared pursuant to the rules of the
Securities and
Exchange Commission for quarterly reports on Form 10-Q and do not
include all
of the information and note disclosures required by generally
accepted
accounting principles. These statements should be read in
conjunction with the
consolidated financial statements and notes thereto for the year
ended June 30,
1996, included in the Company's Form 10-K as filed with the
Securities and
Exchange Commission on September 27, 1996.
The consolidated balance sheet as of March 31, 1997, the
consolidated
statements of income for the three and nine months ended March
31, 1997 and
1996, and the consolidated statements of cash flows for the nine
months ended
March 31, 1997 and 1996 are unaudited but, in the opinion of
management,
include all adjustments (consisting of normal, recurring
adjustments) necessary
for a fair presentation of results for these interim periods.
The results of operations for the three and nine months ended
March 31,
1997, are not necessarily indicative of the results to be
expected for the
entire fiscal year ending June 30, 1997.
(2) INVENTORIES
Inventories are stated at the lower of cost or market; cost is
determined
principally by the first-in, first-out method. Inventories are
broken down as
follows:
- - -------------------------------------------------------------------------------
March 31, June
30,
1997 1996
(Unaudited)
(Audited)
- - -------------------------------------------------------------------------------
Finished goods and work in progress $ 5,562,099
$3,920,431
Materials and purchased parts 5,060,968
4,755,056
-----------
- - ----------
$10,623,067
$8,675,487
===========
==========
(3) STOCK DIVIDEND
The Company distributed a 3-for-2 stock split in the form of a
stock
dividend on December 21, 1995. All share and per-share data has
been adjusted
to reflect the stock dividend.
(4) TECHNOLOGY TRANSFER AND SPIN-OFF OF SUBSIDIARY
In October 1995, the Company contributed its ownership of
Continental
Assays Corporation and certain assets with a book value of
$175,867 for
1,698,674 shares of common stock of Bone Care International, Inc.
("Bone
Care"), a subsidiary of the Company. In October 1995, the
Company also
exchanged $634,683 of loans receivable from Bone Care for 107,401
shares of
Bone Care common stock. These transactions created a single
vitamin D
development business owned by Bone Care.
On April 18, 1996, the Board of Directors of the Company
declared a
dividend, payable to holders of record of its common stock at the
close of
business on April 24, 1996 (the "record date"), of one share of
Bone Care
common stock for every two shares of the Company's common stock.
The
distribution occurred on May 8, 1996 (the "distribution date").
Prior to the
distribution, the Company made a capital contribution of
$10,725,000 in
exchange for additional common stock of Bone Care and to pay for
federal income
tax benefits received from Bone Care. As a result of the
distribution, the
Company's 97.3% ownership of Bone Care's common stock was
distributed to
holders of the Company's common stock as of the record date.
Bone Care's total
assets as of the distribution date were approximately
$12,650,000.
(5) Stock Buyback Program
On April 22, 1997, the Company approved a stock repurchase
program
pursuant to which it may repurchase up to 1,000,000 shares of its
common stock
from time to time based upon market conditions and other factors.
No
repurchase had been made as of May 14, 1997.
Item 2. Management Discussion and Analysis of Financial Condition
and Results
of Operations
Results of Operations
Revenues increased 15% to $19,857,000 in the three months
ended March 31,
1997 from $17,287,000 in the three months ended March 31, 1996.
For the nine
months ended March 31, 1997, revenues increased 27% to
$59,288,000 from
$46,582,000 in the nine months ended March 31, 1996. Sales by
product line are
summarized as follows:
Revenues by Product
(in thousands)
Three Months Ended Nine Months Ended
March 31, March 31, March 31, March
31,
1997 1996 1997 1996
DPX $12,757 $10,848 $43,301 $26,690
EXPERT 1,613 2,942 3,254 8,651
Achilles 1,287 1,003 4,073 4,003
Orthopedic
Imaging 2,891 1,247 5,017 4,246
Other 1,309 1,247 3,643 2,992
------- ------- ------- --------
$19,857 $17,287 $59,288 $46,582
The increase in DPX sales in the current fiscal year is
primarily
attributable to increased shipments in the United States, which
the Company
believes are related to the introduction of several new drug
therapies during
the last 18 months. Densitometer sales were somewhat below
expectations in the
three months ended March 31, 1997 due to lower-than-expected
sales in Japan and
Europe. EXPERT sales in particular have been adversely impacted
by competitive
factors. The increase in orthopedic imaging sales during the
three months
ended March 31, 1997 is due in part to the Company's introduction
of the ORCA
mini C-arm, a portable x-ray device used by surgeons to image
extremities.
Cost of sales as a percentage of equipment sales averaged
approximately
44% in the three and nine month periods ended March 31, 1997,
compared to 46%
and 45% in the three and nine month periods ended March 31, 1996,
respectively.
Research and development expenditures decreased to $1,430,000
in the three
months ended March 31, 1997 from $1,489,000 in the three months
ended March 31,
1996, and decreased to $4,015,000 in the nine months ended March
31, 1997 from
$4,361,000 in the nine months ended March 31, 1996. The Company
spun-off Bone
Care to its shareholders on May 8, 1996 in a transaction intended
to qualify as
a tax-free distribution. The costs of clinical trials and any
other costs
related to the research and development of vitamin D compounds
are no longer
included in the Company's consolidated net income. Vitamin
D-related expenses
were $289,000 and $833,000 in the three and nine months ended
March 31, 1996,
respectively.
Sales and marketing expenses were $4,118,000 in the three
months ended
March 31, 1997 and $3,606,000 in the three months ended March 31,
1996. For
the nine months ended March 31, 1997, sales and marketing
expenses were
$12,492,000 compared to $9,995,000 for the nine months ended
March 31, 1996.
Sales and marketing expenses were 21% of equipment sales for all
periods
presented.
General and administrative expenses increased to $1,306,000 in
the three
months ended March 31, 1997 from $836,000 in the three months
ended March 31,
1996, and increased to $3,794,000 in the nine months ended March
31, 1997 from
$3,718,000 in the nine months ended March 31, 1996. The increases
were
primarily attributable to increased labor related costs.
Interest income was $356,000 and $1,064,000 in the three and
nine months
ended March 31, 1997, respectively, compared to $410,000 and
$1,194,000 in the
three and nine months ended March 31, 1996, respectively. The
Company sold
$7,300,000 of financed accounts receivable from selected
customers in Latin
America on December 31, 1996, and invested the proceeds in lower
yielding
government securities.
In December 1996, a court awarded the Company and the
University of
Alabama-Birmingham (the co-plaintiffs) $4,200,000 in a patent
infringement case
against EG&G Astrophysics (EG&G). The co-plaintiffs split the
award after
deducting legal expenses. The Company's resulting $1,829,000
share of the
award is reflected in other income. The co-plaintiffs entered
into a
Settlement and License Agreement with EG&G providing for future
royalty
payments based on the volume of EG&G equipment sales utilizing
the technology
subject to the license.
The effective tax rate averaged 33% and 34% in the three and
nine month
periods ended March 31, 1997, respectively, compared to 31% and
28% in the
three and nine month periods ended March 31, 1996, respectively.
The effective
tax rates vary from the federal statutory rate of 34% as a result
of the tax
benefit from the Company's foreign sales corporation, Lunar FSC,
Inc.,
tax-exempt interest income, offset by the provision for state
income taxes. The
effective tax rate has been trending higher in the current fiscal
year due to
increased profits from sales within the United States, which do
not benefit
from the Company's foreign sales corporation.
Liquidity and Capital Resources
Cash and cash equivalents decreased $809,000 to $7,193,000 in
the nine
months ended March 31, 1997. Marketable securities aggregating
$22,621,000 at
March 31, 1997 consist of a laddered portfolio of readily
marketable high-grade
municipal bonds with various maturities not exceeding 48 months.
The Company's accounts receivable decreased $6,225,000 to
$29,734,000 at
March 31, 1997 from $35,953,000 at June 30, 1996. This decrease
is
attributable to the sale of approximately $7,300,000 of accounts
receivable
from selected customers in Latin America to a leasing company on
December 31,
1996. The Company continues to have recourse of approximately
10% of the sales
price in the event non-payment of the underlying accounts
receivable should
occur. The resulting decrease was partially offset by higher
accounts
receivable resulting from increases in sales.
Inventories increased 22% to $10,623,000 at March 31, 1997
from $8,675,000
at June 30, 1996. The increase in inventories is primarily
attributable to
increases in DPX and orthopedic imaging parts. The Company does
not have any
pending material commitments for capital expenditures.
On April 22, 1997, the Company approved a stock repurchase
program
pursuant to which it may repurchase up to 1,000,000 shares of its
common stock
from time to time based upon market conditions and other factors.
No
repurchase had been made as of May 14, 1997.
Management believes the current level of cash and short-term
investments
is adequate to finance the Company's operations for the
foreseeable future.
PART II - OTHER INFORMATION
LUNAR CORPORATION AND SUBSIDIARIES
Item 1. Legal Proceedings
Patent Litigation: On March 5, 1996, the Company
and University
of Alabama - Birmingham Research Foundation (UAB)
(collectively the
co-plaintiffs) sued EG&G Astrophysics (EG&G) of Long
Beach,
California, in the United States District Court for the
Western
District of Wisconsin for infringement of U.S. Patent
4,626,688 (the
'688 Patent) by EG&G's dual-energy baggage scanners. A
trial of the
matter in December of 1996 concluded with a verdict in
favor of the
co-plaintiffs. The Company and UAB were awarded $4.2
million in
damages which was divided between the co-plaintiffs after
deducting
legal expenses. The co-plaintiffs also entered into a
Settlement and
License Agreement with EG&G whereby EG&G was licensed
under the '688
patent and a related U.S. patent. The license agreement
provides for
payment of royalties to the co-plaintiffs on EG&G's
dual-energy
baggage scanners manufactured or sold in the United
States. The
license agreement ends on December 2, 2003.
During fiscal 1995 and part of fiscal year 1996, the
Company was
involved in patent litigation with Hologic, Inc., a
Massachusetts-based
competitor. On November 22, 1995, the Company announced
the
signing of a definitive agreement with Hologic settling
all disputes
between the parties. The agreement provides for certain
continuing
payments between the companies related to future sales,
the net
effect of which Lunar does not believe will be material
to its
revenues or earnings. The agreement also provides that
the companies
will not engage each other in patent litigation in the
area of x-ray
and ultrasound densitometry for a ten-year period.
Item 2. Changes in Securities
None
Item 3. Defaults Upon Senior Securities
None
Item 4. Submission of Matters to a Vote of Security Holders
None.
Item 5. Other Information
Safe Harbor Statement Under the Private Securities
Litigation
Reform Act of 1995: Certain statements in this filing,
and elsewhere
(such as in other filings by the Company with the
Securities and
Exchange Commission, press releases, presentations by the
Company or
its management, and oral statements) constitute
"forward-looking
statements" within the meaning of the Private Securities
Litigation
Reform Act of 1995. Such forward-looking statements
involve known
and unknown risks, uncertainties, and other factors which
may cause
the actual results, performance, or achievements of the
Company to be
materially different from any future results,
performance, or
achievements expressed or implied by such forward-looking
statements.
Such factors include, among other things, regulation,
technical risks
associated with the development of new products,
regulatory policies
in the United States and other countries, reimbursement
policies of
public and private health care payors, introduction and
acceptance of
new drug therapies, competition from existing products
and from new
products or technologies, and market and general economic
factors.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits furnished:
(11) Statement Re: Computation of Earnings Per
Share
(27) Financial Data Schedule
(b) Reports on Form 8-K
No reports on Form 8-K were filed by the Company
during the
quarter ended March 31, 1997.
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.
LUNAR CORPORATION
(Registrant)
Date: May 14, 1997 /s/ Richard B. Mazess
Richard B. Mazess
President
(Principal Executive Officer)
Date: May 14, 1997 /s/ Robert A. Beckman
Robert A. Beckman
Vice President of Finance
and Treasurer
(Principal Financial and
Accounting Officer)
LUNAR CORPORATION AND SUBSIDIARIES
Exhibit Index
For the Quarterly Period Ended March 31, 1997
No. Description
Page
11 Statement Regarding Computation of Earnings Per Share . . . .
. . . . . . 15
27 Financial Data Schedule . . . . . . . . . . . . . . . . . . .
. . . . . . 16
Exhibit 11
LUNAR CORPORATION AND SUBSIDIARIES
Statement Regarding Computation of Earnings Per
Share
(Unaudited)
Three months ended Nine
months ended
March 31, March 31, March
31, March 31,
1997 1996 1997
1996
Net income $3,277,084 $2,588,289
$10,723,534 $6,159,819
Weighted average shares
outstanding 8,674,318 8,234,035
8,580,534 8,108,387
Stock options calculated
according to the treasury
stock method 489,211 765,759
522,807 746,493
Weighted average number of common
and common-equivalent shares
outstanding 9,163,529 8,999,794
9,103,341 8,854,880
Net income per common and
common-equivalent shares $0.36 $0.29
$1,18 $0.70
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND> This schedule contains summary financial
information
extracted from Form 10-Q for the three months
ended
March 31, 1997, and is qualified in its
entirety by
reference to such financial statements.
<MULTIPLIER> 1,000
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1997
<PERIOD-END> MAR-31-1997
<CASH> 7,193
<SECURITIES> 22,621
<RECEIVABLES> 32,442
<ALLOWANCES> 2,709
<INVENTORY> 10,623
<CURRENT-ASSETS> 51,179
<PP&E> 7,886
<DEPRECIATION> 3,677
<TOTAL-ASSETS> 77,885
<CURRENT-LIABILITIES> 11,296
<BONDS> 0
<COMMON> 87
0
0
<OTHER-SE> 66,501
<TOTAL-LIABILITY-AND-EQUITY> 77,885
<SALES> 59,288
<TOTAL-REVENUES> 59,288
<CGS> 26,149
<TOTAL-COSTS> 46,449
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 16,215
<INCOME-TAX> 5,491
<INCOME-CONTINUING> 10,724
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10,724
<EPS-PRIMARY> 1.18
<EPS-DILUTED> 1.18
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