<PAGE> 1
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 February 28, 1999 or
-----------------
[ ] Transition report pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from ___________ to ____________
Commission file number: 2-45166
-------
A. Schulman, Inc. and its Consolidated Subsidiaries
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in its Charter)
Delaware 34-0514850
- -------------------------------- ---------------------------------
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
3550 West Market Street, Akron, Ohio 44333
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices) (Zip Code)
(330) 666-3751
- --------------------------------------------------------------------------------
(Registrant's Telephone Number, including Area Code)
- --------------------------------------------------------------------------------
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last
Report)
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes X No
----- -----
Number of common shares outstanding
as of March 31, 1999 - 31,362,505
<PAGE> 2
<TABLE>
<CAPTION>
A. SCHULMAN, INC.
STATEMENT OF CONSOLIDATED INCOME (Notes 1 and 2)
For the three months ended For the six months ended
---------------------------------- ----------------------------------
February February February February
28, 28, 28, 28,
1999 1998 1999 1998
------------- ------------- ------------- -------------
Unaudited Unaudited
--------- ---------
<S> <C> <C> <C> <C>
Net sales $ 235,198,000 $ 239,840,000 $ 493,844,000 $ 504,048,000
Interest and other income 1,111,000 673,000 1,762,000 1,603,000
------------- ------------- ------------- -------------
236,309,000 240,513,000 495,606,000 505,651,000
------------- ------------- ------------- -------------
Costs and expenses:
Cost of goods sold 195,706,000 198,962,000 404,902,000 419,351,000
Selling, general and
administrative expenses 25,205,000 22,642,000 52,230,000 45,699,000
Interest expense 793,000 382,000 1,623,000 683,000
Foreign currency transaction
(gains) losses (87,000) (449,000) 722,000 (356,000)
Minority interest 382,000 367,000 703,000 551,000
------------- ------------- ------------- -------------
221,999,000 221,904,000 460,180,000 465,928,000
------------- ------------- ------------- -------------
Income before taxes and cumulative
effect of accounting change 14,310,000 18,609,000 35,426,000 39,723,000
Provision for income taxes 5,670,000 7,624,000 13,968,000 16,204,000
------------- ------------- ------------- -------------
Income before cumulative effect
of accounting change 8,640,000 10,985,000 21,458,000 23,519,000
Cumulative effect of accounting
change (Note 6) -- -- -- (2,007,000)
------------- ------------- ------------- -------------
Net income 8,640,000 10,985,000 21,458,000 21,512,000
Less: Preferred stock dividends (13,000) (13,000) (27,000) (27,000)
------------- ------------- ------------- -------------
Net income applicable to
common stock $ 8,627,000 $ 10,972,000 $ 21,431,000 $ 21,485,000
============= ============= ============= =============
Weighted average number of
shares outstanding (Note 7):
Basic 31,981,838 35,764,943 32,135,088 35,897,235
Diluted 32,005,575 35,834,581 32,146,957 35,948,676
Basic and diluted earnings per
common share (Note 7):
Income before cumulative effect
of accounting change $ .27 $ .31 $ .67 $ .66
Cumulative effect of accounting
change -- -- -- (.06)
------------- ------------- ------------- -------------
Net income $ .27 $ .31 $ .67 $ .60
============= ============= ============= =============
</TABLE>
- 2 -
<PAGE> 3
<TABLE>
<CAPTION>
A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEET (Notes 1 and 2)
February 28, August 31,
Assets 1999 1998
----------- ----------
Unaudited
---------
<S> <C> <C>
Current assets:
Cash and cash equivalents (Note 3) $ 48,175,000 $ 60,766,000
Accounts receivable, less allowance
for doubtful accounts of $4,554,000 at
February 28, 1999 and $4,778,000 at
August 31, 1998 173,646,000 148,838,000
Inventories, average cost or market,
whichever is lower 172,656,000 165,661,000
Prepaids, including tax effect of
temporary differences 16,015,000 20,220,000
------------ ------------
Total current assets 410,492,000 395,485,000
------------ ------------
Other assets:
Cash surrender value of life insurance 494,000 500,000
Deferred charges, etc., including tax effect
of temporary differences 23,012,000 17,752,000
------------ ------------
23,506,000 18,252,000
------------ ------------
Property, plant and equipment, at cost:
Land and improvements 9,224,000 9,253,000
Buildings and leasehold improvements 71,478,000 69,178,000
Machinery and equipment 211,522,000 202,199,000
Furniture and fixtures 22,814,000 22,422,000
Construction in progress 19,655,000 18,854,000
------------ ------------
334,693,000 321,906,000
Accumulated depreciation and investment grants
of $287,000 at February 28, 1999 and
$355,000 at August 31, 1998 182,151,000 173,723,000
------------ ------------
152,542,000 148,183,000
------------ ------------
$586,540,000 $561,920,000
============ ============
</TABLE>
- 3 -
<PAGE> 4
A. SCHULMAN, INC.
CONSOLIDATED BALANCE SHEET (Notes 1 and 2)
<TABLE>
<CAPTION>
February 28, August 31,
Liabilities and Stockholders' Equity 1999 1998
------------ ----------
Unaudited
---------
<S> <C> <C>
Current liabilities:
Notes payable $ 4,900,000 $ 4,000,000
Accounts payable 67,347,000 58,640,000
U.S. and foreign income taxes payable 12,964,000 9,865,000
Accrued payrolls, taxes and related benefits 18,579,000 18,073,000
Other accrued liabilities 19,768,000 16,607,000
------------- -------------
Total current liabilities 123,558,000 107,185,000
------------- -------------
Long-term debt 60,000,000 40,000,000
Other long-term liabilities 36,975,000 35,704,000
Deferred income taxes 9,577,000 9,852,000
Minority interest 2,260,000 2,908,000
Stockholders' equity (Note 4):
Preferred stock, 5% cumulative, $100
par value, authorized, issued and
outstanding - 10,689 shares at February 28,
1999 and August 31, 1998 1,069,000 1,069,000
Special stock, 1,000,000 shares authorized,
none outstanding - -
Common stock, $1 par value
Authorized - 75,000,000 shares
Issued - 38,347,367 shares at February 28, 1999
and August 31, 1998 38,347,000 38,347,000
Other capital 45,778,000 45,778,000
Cumulative foreign currency translation
adjustment (11,030,000) (8,917,000)
Retained earnings 409,421,000 395,746,000
Treasury stock, at cost, 6,527,862 shares at
February 28, 1999 and 5,068,862 shares at
August 31, 1998 (Note 5) (127,742,000) (103,758,000)
Unearned stock grant compensation (1,673,000) (1,994,000)
------------- -------------
Common stockholders' equity 353,101,000 365,202,000
------------- -------------
Total stockholders' equity 354,170,000 366,271,000
------------- -------------
$ 586,540,000 $ 561,920,000
============= =============
</TABLE>
-4-
<PAGE> 5
A. SCHULMAN, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Notes 1 and 2)
<TABLE>
<CAPTION>
Six months ended
----------------
February 28, February 28,
1999 1998
---- ----
Unaudited
---------
<S> <C> <C>
Provided from (used in) operating activities:
Net income $ 21,458,000 $ 21,512,000
Items not requiring the current use of cash:
Cumulative effect of accounting change (Note 6) - 2,007,000
Depreciation 10,643,000 9,380,000
Non-current deferred taxes 228,000 (92,000)
Foreign pension and other deferred compensation 1,432,000 1,296,000
Postretirement benefit obligation 532,000 608,000
Changes in working capital:
Accounts receivable (28,037,000) (14,110,000)
Inventories (7,750,000) (19,611,000)
Prepaids 4,302,000 194,000
Accounts payable 11,048,000 8,905,000
Income taxes 3,249,000 (3,313,000)
Accrued payrolls and other accrued liabilities 4,007,000 1,469,000
Changes in other assets and other
long-term liabilities (6,300,000) (948,000)
------------ ------------
Net cash provided from
operating activities 14,812,000 7,297,000
------------ ------------
Provided from (used in) investing activities:
Expenditures for property, plant and equipment (16,072,000) (13,759,000)
Disposals of property, plant and equipment 318,000 580,000
Purchases of short-term investments - (8,187,000)
Proceeds from sales of short-term investments - 10,993,000
------------ ------------
Net cash used in
investing activities (15,754,000) (10,373,000)
------------ ------------
Provided from (used in) financing activities:
Cash dividends paid (7,722,000) (7,906,000)
Increase of notes payable 900,000 3,400,000
Increase of long-term debt 20,000,000 18,000,000
Reduction of long-term debt - (27,000)
Decrease in minority interest (648,000) (499,000)
Purchase of treasury stock (23,984,000) (11,814,000)
Exercise of stock options - 59,000
------------ ------------
Net cash provided from (used in)
financing activities (11,454,000) 1,213,000
------------ ------------
Effect of exchange rate changes on cash (195,000) (142,000)
------------ ------------
Net decrease in cash and cash equivalents (12,591,000) (2,005,000)
Cash and cash equivalents at beginning of period 60,766,000 69,147,000
------------ ------------
Cash and cash equivalents at end of period $ 48,175,000 $ 67,142,000
============ ============
</TABLE>
-5-
<PAGE> 6
A. SCHULMAN, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(1) The results of operations for the six months ended February 28, 1999 are not
necessarily indicative of the results expected for the year ended August 31,
1999.
(2) The interim financial statements furnished reflect all adjustments which
are, in the opinion of management, necessary to a fair presentation of the
results of the interim period presented. All such adjustments are of a normal
recurring nature.
(3) All highly liquid investments purchased with a maturity of three months or
less are considered to be cash equivalents. Such investments amounted to
$38,778,000 at February 28, 1999 and $40,036,000 at August 31, 1998. Investments
with maturities between three and twelve months are considered to be short-term
investments.
(4) A summary of the stockholders' equity accounts for the six months ended
February 28, 1999 is as follows:
<TABLE>
<CAPTION>
Foreign Unearned
Currency Stock
Common Other Retained Translation Grant
Stock Capital Earnings Adjustment Compensation
----- ------- -------- ---------- ------------
<S> <C> <C> <C> <C> <C>
Balance-September 1, 1998 $38,347,000 $45,778,000 $395,746,000 $ (8,917,000) $(1,994,000)
Net income 21,458,000
Dividends paid or accrued:
Preferred (27,000)
Common, $.24 per share (7,756,000)
Foreign currency
translation adjustment (2,113,000)
Amortization of
restricted stock 321,000
----------- ----------- ------------ ------------ -----------
Balance-February 28, 1999 $38,347,000 $45,778,000 $409,421,000 $(11,030,000) $(1,673,000)
=========== =========== ============ ============ ===========
</TABLE>
(5) During the six months ended February 28, 1999, the Company repurchased
1,459,000 shares of its common stock for $23,984,000. Subject to market
conditions, the Company intends to continue repurchasing its common stock in
1999.
(6) On November 20, 1997, the FASB Emerging Issues Task Force issued a new
ruling which requires the write-off of business process re-engineering costs.
Accordingly, the Company wrote-off, in fiscal 1998, $3,237,000 of such costs
which were capitalized as of August 31, 1997. This write-off, net of income
taxes, amounted to $2,007,000 or $.06 per share and is accounted for as a
cumulative effect of a change in accounting method for fiscal 1998.
(7) Effective February 28, 1998, the Company adopted Statement of Financial
Accounting Standards No. 128, "Earnings Per Share." This statement requires two
presentations of earnings per share - "basic" and "diluted." Basic earnings per
share is computed by dividing income available to common shareholders by the
weighted-average number of common shares outstanding for the period. Diluted
earnings per share reflects the potential dilution that could occur if common
stock equivalents were exercised and then shared in the earnings of the Company.
Any difference between basic and diluted weighted-average common shares results
from the assumed exercise of outstanding stock options and grants of restricted
stock, calculated using the treasury stock method.
-6-
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Material Changes in Results of Operations
- -----------------------------------------
A comparison of net sales by classification for both the three month
and six month periods ending February 28, 1999 and 1998 is as follows:
(In Thousands)
Three Months Ended February 28, Six Months Ended February 28,
------------------------------- -----------------------------
Increase Increase
1999 1998 (Decrease) 1999 1998 (Decrease)
---- ---- ---------- ---- ---- ----------
Manufacturing $162,140 $158,513 $ 3,627 $337,911 $331,359 $ 6,552
Merchant 38,950 43,353 (4,403) 86,466 92,745 (6,279)
Distribution 34,108 37,974 (3,866) 69,467 79,944 (10,477)
-------- -------- ------- -------- -------- --------
$235,198 $239,840 $(4,642) $493,844 $504,048 $(10,204)
======== ======== ======= ======== ======== ========
The primary reason for the decline in sales was the extremely low level
of pricing in the worldwide plastics market.
The translation effect of foreign currencies was not a significant
factor in 1999. It increased sales by $5.8 million for the quarter and $5.7
million for the six month period.
Total tonnage was up 2.5% for the quarter, but flat for the six month
period. Although manufacturing tonnage was flat for the quarter, merchant
tonnage grew 11.7% with increases in both Europe and North America.
Gross margins on sales for the quarter were 16.8% compared to 17% for
the same quarter last year. Gross margins on sales for the six months ended
February 28, 1999 were 18% compared with 16.8% for the comparable six month
period last year. An important factor for the increase in gross margins was
lower resin prices. A major reason for the decline in the gross profit
percentage during the current quarter compared to the same quarter last year was
a decline in the plant utilization rate from 86% in 1998 to 82% in 1999.
Utilization was off in both Europe and North America due to higher capacities
and softer than anticipated business conditions. A comparison of gross profit by
classification for both the three month and six month periods ending February
28, 1999 and 1998 is as follows:
(In Thousands)
Three Months Ended February 28, Six Months Ended February 28,
------------------------------- -----------------------------
Increase Increase
1999 1998 (Decrease) 1999 1998 (Decrease)
---- ---- ---------- ---- ---- ----------
Manufacturing $30,375 $30,968 $ (593) $ 67,964 $ 63,431 $4,533
Merchant 4,210 5,265 (1,055) 11,067 11,450 (383)
Distribution 4,907 4,645 262 9,911 9,816 95
------- ------- ------- -------- -------- ------
$39,492 $40,878 $(1,386) $ 88,942 $ 84,697 $4,245
======= ======= ======= ======== ======== ======
Selling, general and administrative expenses increased in 1999. These
increases were the result of including the first quarter expense from a major
plastics trade show held every three years, additional personnel for future
growth and expansion into new areas of the world to better serve our customers
and costs arising from the implementation of new business systems.
Interest expense increased in 1999 due to higher levels of borrowing.
Foreign currency transaction gains and losses were primarily due to
changes in the value of currencies in major areas where the Company operates;
including the U.S.
-7-
<PAGE> 8
dollar, Euro, U.K. pound sterling, Canadian dollar, Mexican peso and Indonesian
rupiah.
Minority interest represents a 30% equity position of Mitsubishi
Chemical MKV Company in a partnership with the Company and a 35% equity position
of P.T. Prima Polycon Indah in an Indonesian joint venture with the Company.
Other income is higher in 1999 due to a settlement arising from the
termination of a supplier arrangement in Europe.
The effective tax rates for the respective three month periods were
39.6% in 1999 and 41% in 1998. For the six months ended February 28, the
effective tax rates were 39.4% in 1999 and 40.8% in 1998. The 1999 tax rates
were lower primarily due to a lower overall effective tax rate in Europe. The
lower European effective tax rate includes a reduction in the French statutory
rate from 41.6% to 40%.
The translation effect of foreign currencies increased net income by
approximately $192,000 or $.01 per share for the quarter and $287,000 or $.01
per share for the six month period.
On November 20, 1997, the FASB Emerging Issues Task Force issued a new
ruling which requires the write-off of business process re-engineering costs.
Accordingly, the Company wrote-off, in fiscal 1998, $3,237,000 of such costs
which were capitalized as of August 31, 1997. This write-off, net of income
taxes, amounted to $2,007,000 or $.06 per share and was accounted for as a
cumulative effect of a change in accounting method for fiscal 1998.
Net income for the quarter was down due to a $4.6 million reduction in
sales, slightly lower margins and higher operating expenses including interest.
Profits for the quarter were off in Europe and North America. Although
December is historically a period of reduced business activity, demand in
December 1998 was softer than normal. The extent of the recovery in the
subsequent months was not enough to overcome this difficult December. Business
in Europe was soft. European profits were off $1,800,000 or 21% due to the
extremely low level of pricing in the worldwide plastics market and higher
expenses.
Quarterly profits in North America were down approximately $600,000
primarily because of lower sales and increased expenses including personnel,
interest and costs arising from the implementation of new business processes.
The Company has recently seen an improvement in both North American and
European order levels as well as some firming in the prices of certain plastic
resins. Nevertheless, low levels of pricing, higher costs and weakness in Europe
will hamper improvement in profits for fiscal 1999.
Material Changes in Financial Condition
- ---------------------------------------
As of February 28, 1999, the current ratio was 3.3:1 and working
capital was $287 million.
During the six months ended February 28, 1999, the Company repurchased
1,459,000 shares of its common stock for $23,984,000. An additional 497,000
shares have been purchased since February 28, 1999. Approximately 3.9 million
shares remain under a 6 million share authorization approved by the Board of
Directors in August 1998. Subject to market conditions, the Company intends to
continue repurchasing its common stock in 1999.
The ratio of long-term liabilities to capital was 21.5% at February 28,
1999 and 17.1% at August 31, 1998. This ratio is calculated by dividing the sum
of long-term debt and other long-term liabilities by the sum of total
stockholders' equity, long-term debt and other long-term liabilities. A primary
factor contributing to the increase of this ratio was an additional $20 million
borrowing under the revolving credit agreement.
The assets and liabilities of the Company's foreign subsidiaries are
translated into U.S. dollars using current exchange rates. Income statement
items are translated at average exchange rates prevailing during the period. The
resulting translation
-8-
<PAGE> 9
adjustments are recorded in the "cumulative foreign currency translation
adjustment" account in stockholders' equity. The strengthening of the U.S.
dollar during the six months ended February 28, 1999 decreased this account by
$2.1 million.
Year 2000
- ---------
The year 2000 issue is the result of computer programs being written
using two digits rather than four to define a specific year. Any computer
program that has date sensitive software may recognize a date using "00" as the
year 1900 rather than the year 2000. This could result in a temporary inability
to process transactions or engage in other business activities.
The Company has been redesigning its North American business processes.
Hardware and software purchased and installed in connection with this project
will provide both Year 2000 readiness and significant additional functionality.
Installation is scheduled to be completed during 1999.
New software is also being installed at the Company's facilities in
Germany, France and the United Kingdom. This software, already being utilized at
the Company's Belgium operations, has been upgraded for the Year 2000
requirements. In addition, this software will provide the Company significant
other benefits, including the adoption of business practices to the Euro.
Installation of this software is scheduled to be completed during 1999.
Information system maintenance or modification costs are expensed as
incurred, while the cost of new software and equipment is capitalized and
amortized over the assets' useful lives. The Year 2000 cost of the software
being installed cannot be specifically identified. Other costs of achieving Year
2000 compliance are not expected to be material to operations or financial
position.
The Company could potentially experience disruptions to some aspects of
its operations as a result of noncompliant systems utilized by unrelated third
party governmental and business entities. The Company is communicating with its
significant suppliers to determine the extent to which the Company may be
vulnerable to their failure to correct their own Year 2000 issues. Currently,
most of the Company's suppliers have acknowledged Year 2000 compliance, however,
not all are yet compliant.
At the present time, the Company has not yet established a formal
contingency plan. The Company has commenced contingency planning and expects to
formalize a plan during 1999, although in certain cases, especially
infrastructure failures, there may be no practical alternative course of action
available to the Company.
Cautionary Statements
- ---------------------
Statements in this report which are not historical facts are forward
looking statements which involve risks and uncertainties and actual events or
results could differ materially from those expressed or implied in this report.
These "forward-looking statements" are based on currently available information.
They are also inherently uncertain, and investors must recognize that events
could turn out to be significantly different from what we had expected. Examples
of such uncertainties include, but are not limited to, the following:
- Worldwide and regional economic, business and political conditions
- Fluctuations in the value of currencies in major areas where the
Company operates, i.e. the U.S. dollar, Euro, U.K. pound sterling,
Canadian dollar, Mexican peso and Indonesian rupiah
- Fluctuations in prices of plastic resins and other raw materials
- Changes in customer demand and requirements
-9-
<PAGE> 10
Part II - Other Information
- ---------------------------
Items 1 through 5 are not applicable or the answer to such items is
negative; therefore, the items have been omitted and no reference is required in
this report.
Item 6 - Exhibits and Reports on Form 8-K
- -----------------------------------------
(a) Exhibit
Number Exhibit
------ -------
27 Financial Data Schedule*
(b) No Reports on Form 8-K have been filed during the quarter for which this
report is filed.
- -----
* Filed only in electronic format pursuant to Item 601(b)(27) of Regulation
S-K.
-10-
<PAGE> 11
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.
Date April 14, 1999 A. Schulman, Inc.
---------------- -----------------------------------------
(Registrant)
/s/ R. A. Stefanko
-----------------------------------------
R. A. Stefanko, Executive Vice President-
Finance & Administration
(Signing on behalf of Registrant as a duly
authorized officer of Registrant and signing
as the Principal Financial Officer of
Registrant)
- 11 -
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET AS OF FEBRUARY 28, 1999 AND AUGUST 31, 1998 AND THE
STATEMENT OF CONSOLIDATED INCOME FOR THE THREE MONTHS ENDED FEBRUARY 28, 1999
AND FEBRUARY 28, 1998 AND FOR THE SIX MONTHS ENDED FEBRUARY 28, 1999 AND
FEBRUARY 28, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000087565
<NAME> A. SCHULMAN, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> AUG-31-1999
<PERIOD-START> SEP-01-1998
<PERIOD-END> FEB-28-1999
<CASH> 48,175
<SECURITIES> 0
<RECEIVABLES> 173,646
<ALLOWANCES> 4,554
<INVENTORY> 172,656
<CURRENT-ASSETS> 410,492
<PP&E> 334,693
<DEPRECIATION> 182,151
<TOTAL-ASSETS> 586,540
<CURRENT-LIABILITIES> 123,558
<BONDS> 60,000
0
1,069
<COMMON> 38,347
<OTHER-SE> 314,754
<TOTAL-LIABILITY-AND-EQUITY> 586,540
<SALES> 493,844
<TOTAL-REVENUES> 495,606
<CGS> 404,902
<TOTAL-COSTS> 460,180
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 1,623
<INCOME-PRETAX> 35,426
<INCOME-TAX> 13,968
<INCOME-CONTINUING> 21,458
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,458
<EPS-PRIMARY> .67
<EPS-DILUTED> .67
</TABLE>
