FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
- ---- EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1999
----------------
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
---------- -----------
For Quarter Ended Commission file number 0-19633
--------- -------
ENGLE HOMES, INC.
- --------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
FLORIDA 59-2214791
- ------------------------------- ---------------------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
123 N.W. 13th Street
Boca Raton, Florida 33432
- ------------------------------- --------------------------------
(Address of principal executive offices) (Zip code)
(Registrant's telephone number, including area code) (561) 391-4012
----------------------
NONE
- --------------------------------------------------------------------------
(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 report(s), and (2) has been subject to filing requirements
for the past 90 days.
YES x NO
------ ------
Number of shares of common stock outstanding as of July 31, 1999: 11,225,211
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
<TABLE>
ENGLE HOMES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(dollars in thousands)
<CAPTION>
July 31, October 31,
1999 1998
----------- -----------
(Unaudited)
<S> <C> <C>
ASSETS
CASH
Unrestricted $ 56,798 $ 20,041
Restricted 2,319 1,074
INVENTORIES 373,357 352,620
PROPERTY AND EQUIPMENT, net 6,115 4,339
OTHER ASSETS 37,722 22,293
GOODWILL 5,242 5,291
MORTGAGE LOANS HELD FOR SALE 27,767 25,770
----------- -----------
TOTAL ASSETS $ 509,320 $ 431,428
=========== ===========
LIABILITIES
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES $ 32,316 $ 26,570
CUSTOMER DEPOSITS 14,828 12,227
BORROWINGS 5,949 55,856
SENIOR NOTES PAYABLE 248,124 149,281
FINANCIAL SERVICES BORROWINGS 27,767 25,770
----------- -----------
TOTAL LIABILITIES $ 328,984 $ 269,704
----------- -----------
SHAREHOLDERS' EQUITY
PREFERRED STOCK, $.01 par, share authorized
1,000,000, none issued
COMMON STOCK, $.01 par, shares authorized
25,000,000; issued and outstanding 11,225,211
and 11,169,237, respectively 112 112
ADDITIONAL PAID-IN CAPITAL 103,802 103,134
RETAINED EARNINGS 76,422 58,478
----------- -----------
TOTAL SHAREHOLDERS' EQUITY 180,336 161,724
----------- -----------
$ 509,320 $ 431,428
=========== ===========
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
2
<TABLE>
ENGLE HOMES, INC. AND SUBSIDIARIES
Consolidated Statements of Income
(Unaudited)
(dollars in thousands, except per share data)
<CAPTION>
Three Months Ended Nine Months Ended
July 31, 1999 July 31, 1999
-------------------- --------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
REVENUES
Sales of homes $ 192,811 $ 149,963 $ 511,031 $ 345,315
Sales of land 3,996 762 6,030 11,127
Rent and other 853 881 2,720 2,049
Financial services 5,967 5,219 17,062 13,086
--------- --------- --------- ---------
203,627 156,825 536,843 371,577
--------- --------- --------- ---------
COSTS AND EXPENSES
Cost of sales - homes 162,163 128,532 431,632 293,561
Cost of sales - land 3,580 736 5,512 10,069
Selling, marketing, general
and administrative 19,172 15,022 51,826 37,753
Depreciation and amortization 1,514 857 3,984 2,092
Financial services 4,134 3,510 12,110 9,178
--------- --------- --------- ---------
190,563 148,657 505,064 352,653
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES AND
EXTRAORDINARY ITEMS 13,064 8,168 31,779 18,924
Provision for income taxes 5,043 3,145 12,267 7,286
--------- --------- --------- ---------
INCOME BEFORE EXTRAORDINARY ITEMS 8,021 5,023 19,512 11,638
Loss on extinguishment of debt,
net of income taxes (1,802) (2,612)
--------- --------- --------- ---------
NET INCOME $ 8,021 $ 3,221 $ 19,512 $ 9,026
========= ========= ========= =========
Income per share before
extraordinary items
Basic $ 0.71 $ 0.45 $ 1.74 $ 1.22
Diluted $ 0.71 $ 0.44 $ 1.73 $ 1.18
Basic - extraordinary items $ (0.16) $ (0.27)
Diluted - extraordinary items $ (0.16) $ (0.25)
Net income per share
Basic $ 0.71 $ 0.29 $ 1.74 $ 0.95
Diluted $ 0.71 $ 0.28 $ 1.73 $ 0.93
Shares used in earnings per
share calculations
Basic 11,219 11,152 11,200 9,572
Diluted 11,350 11,369 11,304 10,326
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
3
<TABLE>
ENGLE HOMES, INC. AND SUBSIDIARIES
Condensed Consolidated Statement of Shareholders' Equity
For the Nine Months Ended July 31, 1999
(Unaudited)
(in thousands)
<CAPTION>
Common Stock Additional
-------------- Paid-In Retained
Shares Amount Capital Earnings Total
------ ------ ---------- -------- ---------
<S> <C> <C> <C> <C> <C>
Amounts at
October 31, 1998 11,169 $ 112 $ 103,134 $ 58,478 $ 161,724
Net Income for the
Nine Months Ended
July 31, 1999 19,512 19,512
Dividends to
Shareholders (1,568) (1,568)
Common stock issued
in connection with
employee stock bonus
plan 46 572 572
Common stock issued
in connection with
exercise of stock
options 10 96 96
------- ------ ---------- -------- ---------
Amounts at
July 31, 1999 11,225 $ 112 $ 103,802 $ 76,422 $ 180,336
======= ====== ========== ======== =========
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
4
<TABLE>
ENGLE HOMES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(dollars in thousands)
<CAPTION>
Nine Months Ended
July 31,
---------------------
1999 1998
--------- ---------
<S> <C> <C>
NET CASH REQUIRED BY OPERATING ACTIVITIES $ (3,624) $ (97,397)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Net acquisitions of property and equipment (4,827) (2,947)
--------- ---------
Net cash required by investing activities (4,827) (2,947)
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Increase in borrowings 22,000 183,347
Repayment of borrowings (71,907) (206,945)
Proceeds from issuance of senior notes 96,587 145,875
Redemption of subordinated bonds (56,415)
Proceeds from issuance common stock 39,503
Distribution to shareholders (1,568) (1,170)
Stock options exercised 96 182
--------- ---------
Net cash provided by
financing activities 45,208 104,377
--------- ---------
NET INCREASE IN CASH 36,757 4,033
CASH AT BEGINNING OF PERIOD 20,041 15,565
--------- ---------
CASH AT END OF PERIOD $ 56,798 $ 19,598
========= =========
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
</TABLE>
5
ENGLE HOMES, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
NOTE 1 BASIS OF PRESENTATION AND BUSINESS
These statements do not contain all information required by generally
accepted accounting principles that are included in a full set of financial
statements. In the opinion of management, the accompanying unaudited condensed
consolidated financial statements reflect all adjustments necessary to present
fairly the financial position of Engle Homes, Inc. and subsidiaries ("the
Company") at July 31, 1999 and results of its operations and its cash flows
for the period then ended and period ended July 31, 1998. These unaudited
condensed consolidated financial statements should be read in conjunction with
the audited financial statements and notes contained in the Company's Form 10-K
for the year ended October 31, 1998. Results of operations for this period are
not necessarily indicative of results to be expected for the full year.
Engle Homes, Inc. and subsidiaries are engaged principally in construction
and sale of residential homes and land development in Florida; Dallas, Texas;
Denver, Colorado; Raleigh, North Carolina; Atlanta, Georgia; Phoenix, Arizona
and Virginia. Ancillary products and services to its residential homebuilding
include land sales to other builders, origination and sale of mortgage loans,
and title transfer services. The consolidated financial statements include the
accounts of the Company and all subsidiaries. All significant intercompany
balances and transactions have been eliminated in consolidation.
<TABLE>
NOTE 2 INVENTORIES (dollars in thousands)
<CAPTION>
July 31, October 31,
1999 1998
--------- -----------
<S> <C> <C>
Land and improvements for residential homes
under development $ 269,640 $ 269,044
Residential homes under construction 103,717 83,576
--------- -----------
$ 373,357 $ 352,620
========= ============
</TABLE>
<TABLE>
NOTE 3 CAPITALIZATION OF INTEREST (dollars in thousands)
Included in inventory is the following:
<CAPTION>
For the Three Months For the Nine Months
Ended July 31 Ended July 31,
-------------------- --------------------
1999 1998 1999 1998
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Interest capitalized,
beginning of period $ 16,515 $ 16,617 $ 16,326 $ 16,378
Interest incurred and
capitalized 6,921 4,733 16,179 13,010
Amortized to cost of sales-homes (4,970) (5,119) (13,954) (11,767)
Amortized to cost of sales-land (160) (24) ( 245) (1,414)
--------- --------- --------- ---------
Interest capitalized, end of
period $ 18,306 $ 16,207 $ 18,306 $ 16,207
========= ========= ========= =========
6
</TABLE>
NOTE 4 SHAREHOLDERS' EQUITY AND DEBT
On May 18, 1999, the Company declared a cash dividend of $.06 per share to
shareholders of record on June 4, 1999, which was paid on June 24, 1999.
On April 23, 1999, the Company sold in a private placement pursuant to Rule
144A, $100,000,000 of 9.25% Series B Senior Notes due 2008 (Series B Notes).
The Company used the net proceeds of approximately $96.6 million from the Series
B Notes primarily to repay bank indebtedness and general corporate purposes
including land acquisition.
On July 29, 1999 the Series B Notes were registered under The Securities
Act of 1933.
7
NOTE 5 - EARNINGS PER SHARE (dollars in thousands except share data)
<TABLE>
Basic and diluted earnings per share before extraordinary items are
calculated as follows:
<CAPTION>
For the Three Months For the Nine Months
Ended July 31, Ended July 31,
1999 1998 1999 1998
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Basic:
Income before extraordinary items $ 8,021 $ 5,023 $ 19,512 $ 11,638
Weighted average number of shares
outstanding 11,219 11,152 11,200 9,572
Basic earnings per share 0.71 0.45 1.74 1.22
======== ======== ======== ========
Diluted:
Income before extraordinary items $ 8,021 $ 5,023 $ 19,512 $ 11,638
Interest on 7% convertible
debentures reflected in cost
of sales, net of tax effect 506
-------- -------- -------- --------
Income applicable to diluted
common shares $ 8,021 $ 5,023 $ 19,512 $ 12,144
======== ======== ======== ========
Weighted average number of common
shares outstanding 11,219 11,152 11,200 9,572
Weighted average shares issuable
from assumed excercise of 7%
convertible debentures 549
Options to acquire common stock 131 217 104 205
-------- -------- -------- --------
Diluted weighted average common
shares outstanding 11,350 11,369 11,304 10,326
-------- -------- -------- --------
Diluted earnings per share 0.71 0.44 1.73 1.18
======== ======== ======== ========
</TABLE>
8
Part 1 - Item II
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
<TABLE>
The following table sets forth for the periods indicated certain items of
the Company's financial statements expressed as a percentage of the Company's
total revenues:
<CAPTION>
For the Three For the Nine
Months Ended Months Ended
July 31, July 31,
---------------- ----------------
1999 1998 1999 1998
------ ------ ------ ------
<S> <C> <C> <C> <C>
Total Revenues 100.0% 100.0% 100.0% 100.0%
Costs of home construction and
land sales 81.4 82.4 81.4 81.7
Selling, marketing, general and
administrative expense 9.4 9.6 9.7 10.2
Income before taxes 6.4 5.2 5.9 5.1
</TABLE>
<TABLE>
Backlog
Sales of the Company's homes are generally made pursuant to a standard
contract which requires a down payment of up to 10% of the sales price. The
contract includes a financing contingency which permits the customer to cancel
in the event mortgage financing at prevailing interest rates (including
financing arranged by the Company) is unobtainable within a specified period,
typically four to six weeks. The Company includes an undelivered home sale in
its backlog upon execution of the sales contracts and receipt of the down
payment. Revenue is recognized only upon the closing and delivery of a home.
The Company estimates that the average period between the execution of a
purchase agreement for a home and delivery is approximately six months. The
following table sets forth the Company's backlog for the periods indicated:
<CAPTION>
July 31,
(dollars in thousands)
1999 1998
---------------- ----------------
Units Dollars Units Dollars
----- --------- ----- ---------
<S> <C> <C> <C> <C>
South Florida 397 $ 91,600 371 $ 75,800
Orlando 470 94,100 319 62,100
West Coast Florida 199 35,500 187 30,800
Texas 155 28,800 160 25,500
Denver 230 52,300 203 41,500
Virginia/Maryland 154 40,600 64 17,600
North Carolina 26 5,900 29 5,000
Atlanta, Georgia 54 10,300 19 3,000
Arizona 290 61,800 190 39,300
----- --------- ----- ---------
TOTAL 1,975 $ 420,900 1,542 $ 300,600
===== ========= ===== =========
</TABLE>
9
The increase in unit backlog at July 31, 1999 was due to a record 2,925
new homes sales contracts during the nine months ended July 31, 1999. This
represents an 18.9% increase in the number of new home sales contracts signed,
when compared with 2,461 contracts in the nine months ended July 31, 1998. The
Company is currently marketing in 102 subdivisions at July 31, 1999, compared
to 80 subdivisions at July 31, 1998. At July 31, 1999, the Company was
marketing 15 subdivisions in South Florida; 19 in Central Florida; 18 in West
Coast Florida; 10 in Denver, CO; 12 in Dallas, TX; 7 in Virginia; 3 in Raleigh,
North Carolina; 13 in Phoenix, Arizona and 5 in Atlanta, Georgia.
Result of Operations:
Three Months Ended July 31, 1999 compared to July 31, 1998.
The Company's revenues from home sales for the quarter ended July 31, 1999
increased $42.9 million (or 28.6%) compared to the same period in fiscal 1998.
The number of homes delivered increased 24.0% (to 967 from 780) and the average
selling price of homes delivered increased 3.6% (to $199,000 from $192,000).
The increase of revenues and homes delivered is primarily attributable to an
increased level of backlog at the beginning of the current quarter compared with
the prior year period. Management believes that changes in the average selling
price of homes delivered from period to period are attributable to discrete
factors at each of its subdivisions, including product mix and premium lot
availability, and cannot be predicted for future periods with any degree of
certainty.
The Company's revenues from land sales increased approximately $3.2 million
during the three months ended July 31, 1999, as compared to the same period
in fiscal 1998, primarily as a result of an increase in commercial land sales
at Pembroke Falls, a master-planned community in South Florida.
Cost of home sales increased $33.6 million (or 26.2%) compared to the
quarter ended July 31, 1998 primarily due to the related increase in home sale
revenues. Cost of home sales as a percentage of home sales decreased to 84.1%
from 85.7% as a result of the product mix of homes delivered.
The Company's selling, marketing, general and administrative ("S,G&A")
expenses increased approximately $4.1 million (or 27.6%) during the three months
ended July 31, 1999, as compared to the corresponding fiscal 1998 period,
primarily due to selling and marketing expenses associated with the increased
number of homes delivered during the period and an increase in selling
expenditures related to an increase in the number of residential subdivisions.
S,G&A expenses as a percentage of total revenues for the three months ended
July 31, 1999 decreased to 9.4% compared to 9.6%, primarily due to an increase
in home sales revenues for the period as compared to the prior year.
Primarily as a result of an increase in revenues, income before
extraordinary items increased by $3.0 million in the three months ended July
31, 1999 from the comparable period in fiscal 1998.
Nine months Ended July 31, 1999 compared to July 31, 1998.
The Company's revenues from home sales for the nine months ended July 31,
1999 increased 165.7 million (or 48.0%) compared to the same period in fiscal
1998. The number of homes delivered increased 43.8% (to 2,571 from 1,788) and
the average selling price of homes delivered increased 3.1% (to $199,000 from
$193,000). The increase of revenues and homes delivered is primarily
attributable to an increased level of backlog at the beginning of the current
period compared with the prior year period. Management believes that changes
in the average selling price of homes delivered from period to period are
attributable to discrete factors at each of its subdivisions, including product
10
mix and premium lot availability, and cannot be predicted for future period with
any degree of certainty.
The Company's revenues from land sales decreased approximately $5.1 million
during the nine months ended July 31, 1999, as compared to the same period in
fiscal 1998, primarily as a result of a decrease in commercial land sales at
Pembroke Falls, a master-planned community in South Florida.
Cost of home sales increased $138.1 million (or 47.0%) compared to the same
period in fiscal 1998 primarily due to the related increase in home sale
revenues. Cost of home sales as a percentage of home sales decreased to 84.5%
from 85.0% as a result of the product mix of homes delivered.
The Company's selling, marketing, general and administrative ("S,G&A")
expenses increased approximately $14.1 million (or 37.3%) during the nine months
ended July 31, 1999, as compared to the corresponding fiscal 1998 period,
primarily due to selling and marketing expenses associated with the increased
number of homes delivered during the period and an increase in selling
expenditures related to an increase in the number of residential subdivisions.
S,G&A expenses as a percentage of total revenues for the nine months ended July
31, 1999 decreased to 9.7% compared to 10.2% primarily due to an increase in
home sales revenue for the period as compared to the prior year.
Primarily as a result of the increase in revenues, income before
extraordinary items increased by $7.9 million in the nine months ended July 31,
1999 from the comparable period in fiscal 1998.
Liquidity and Capital Resources
The Company's financing needs are provided by cash flows from operations,
unsecured bank borrowings and from time to time the public debt and equity
markets.
Cash flow from operations has improved as a result of increased revenue
from all homebuilding divisions. The Company anticipates that cash flow from
operations before inventory additions will continue to increase in fiscal year
1999 as a result of increased new home deliveries.
On April 23, 1999, the Company sold in a private placement pursuant to Rule
144A, $100,000,000 of 9.25% Series B Senior Notes due 2008 (Series B Notes).
The Company used the net proceeds of approximately $96.6 million from the Series
B Notes primarily to repay bank indebtedness and general corporate purposes
including land acquisition.
On May 28, 1999, the Company's unsecured revolving credit facility was
amended including a reduction in the aggregate committed amount from $170
million to $100 million and the term of the facility was extended from May 2001
to May 2002. At July 31, 1999 the Company had outstanding borrowings of $100,000
and $11.3 million of letters of credit outstanding. The Company believes that
funds generated from operations and expected borrowing availability under the
Credit Facility will be sufficient to fund the Company's working capital
requirements during fiscal 1999, with the exception of major land acquisitions,
if any.
In addition, Preferred Home Mortgage Company (PHMC) has a warehouse line
of credit for $40.0 million which is guaranteed by the Company. At July 31,
1999 the outstanding balance was $27.8 million to service origination of
mortgage loans. The Company believes that this line is sufficient for its
mortgage banking operation for the remainder of fiscal 1999.
11
Management does not anticipate that PHMC'S expansion of its operation will
significantly impact liquidity because the mortgages are generally sold within
a short period of time after their origination to the Federal National Mortgage
Association (FNMA) or other qualified investors. PHMC has established the
capability to retain the servicing of loans, however, during fiscal 1999 all
servicing rights were sold.
LAND ACQUISITION. The Company is continually exploring opportunities to
purchase parcels of land for its homebuilding operations and is, at any given
time, in various stages of proposing, making offers for, and negotiating the
acquisition of various parcels, whether outright or through options. The
Company has continued to increase its land development and construction
activities in response to current and anticipated demand and expects to pursue
additional land acquisition and development opportunities in the future.
Risk Relating to the "Year 2000 Issue"
The Company has done an assessment of the homebuilding and coporate
operations that utilize the significant information technology ("IT") system and
non-IT systems ("Systems) (embedded technology such as microprocessors in office
equipment). The Company believes that the IT system is Year 2000 compliant in
all material respects.
The Company has replaced certain non-compliant Systems and is in the
process of replacing others. These Systems are not critical to the material
operations of the Company. In substantially all of the cases, the replacement
or upgrading of the non-compliant Systems has occurred or will occur prior to
any exposure to the year 2000. The Company does not believe that the non-
compliant Systems pose a material risk to the financial condition of the Company
and the cost of replacing, upgrading or otherwise changing the non-compliant
Systems will have a material adverse effect. The Company cannot currently
determine to what extent the Year 2000 issue will affect the Systems of
governmental agencies on which the Company is dependent for zoning, building
permits and related matters that are critical to the Company's operation.
The Company has surveyed and continues to survey its significant vendors,
subcontractors, suppliers and financial institutions to assess their readiness
for the year 2000. To date, the responses have indicated their readiness or
anticipated readiness to the year 2000 issue.
The Company believes the most likely Year 2000 worst-case scenario would
be the failure of some vendors, subcontractors or other third parties to achieve
compliance, resulting in a slowdown of the Company's operations. In order to
address the potential non-compliance of third parties affecting the Company's
operations, the Company will continue to survey it largest suppliers,
subcontractors and vendors.
The Company is currently developing its Year 2000 contingency plan.
Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995
The Private Securities Litigation Reform Act of 1995 provides a "safe
harbor" for forward-looking statements. Certain information included in this
Report and other such Company filings (collectively, "SEC filings") under the
Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as
amended (as well as information communicated orally or in writing between the
dates of such SEC filings) contains or may contain information that is forward
looking, related to subject matter such as national and local economic
conditions, the effect of governmental regulation on the Company, the
competitive environment in which the Company operates, changes in interest
12
rates, home prices, availability and cost of land for future growth,
availability of working capital and the availability and cost of labor and
materials. Such forward looking information involves important risks and
uncertainties that could significantly affect expected results. These risks
and uncertainties are addressed in this and other SEC filings.
13
Part II - Other Information
Item 1-6 Not applicable.
14
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.
ENGLE HOMES, INC.
-----------------
(Registrant)
Date: AUGUST 17, 1999 \s\ ALEC ENGELSTEIN
- ------------------------ ------------------------
Alec Engelstein
Chief Executive Officer
Date: AUGUST 17, 1999 \s\ DAVID SHAPIRO
- ------------------------ ------------------------
David Shapiro
Chief Financial Officer
15
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-31-1999
<PERIOD-END> JUL-31-1999
<CASH> 59117
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 373357
<CURRENT-ASSETS> 0
<PP&E> 6115
<DEPRECIATION> 0
<TOTAL-ASSETS> 509320
<CURRENT-LIABILITIES> 0
<BONDS> 248124
0
0
<COMMON> 112
<OTHER-SE> 180224
<TOTAL-LIABILITY-AND-EQUITY> 509320
<SALES> 517061
<TOTAL-REVENUES> 536843
<CGS> 437144
<TOTAL-COSTS> 437144
<OTHER-EXPENSES> 67920
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 31779
<INCOME-TAX> 12267
<INCOME-CONTINUING> 19512
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 19512
<EPS-BASIC> 1.74
<EPS-DILUTED> 1.73
</TABLE>