<PAGE>
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 thirteen week period ended November 29, 1997
-----------------
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 0-20184
The Finish Line, Inc.
------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 35-1537210
- --------------------------------------------------------------------------------
(State or other jurisdiction (I.R.S. Employer identification number)
of incorporation or organization)
3308 North Mitthoeffer Road Indianapolis, Indiana 46236
- ------------------------------------------------------------------------------
(Address of principal executive offices) (zip code)
317-899-1022
------------------------------------------------------------------------
(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 ___
---
Shares of common stock outstanding at December 26, 1997:
Class A 18,167,916
Class B 7,842,232
Page 1 of 12
<PAGE>
PART 1. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE FINISH LINE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
Nov 29, March 1,
1997 1997
--------- ---------
(Unaudited)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 9,061 $ 51,212
Short-term marketable securities 10,470 11,516
Accounts receivable 10,809 4,849
Merchandise inventories 143,004 81,991
Deferred income taxes 1,710 2,785
Other current assets 3,227 3,631
Income taxes recoverable 2,274 --
-------- --------
Total current assets 180,555 155,984
PROPERTY AND EQUIPMENT
Land 315 315
Building 7,564 4,238
Leasehold improvements 47,827 32,732
Furniture, fixtures, and equipment 17,842 14,071
Construction in progress 1,447 4,120
-------- --------
74,995 55,476
Less accumulated depreciation 19,907 15,958
-------- --------
55,088 39,518
OTHER ASSETS
Marketable securities 19,156 20,106
Deferred income taxes 2,119 2,110
Other 237 --
-------- --------
21,512 22,216
-------- --------
Total assets $257,155 $217,718
======== ========
</TABLE>
See accompanying notes.
Page 2 of 12
<PAGE>
THE FINISH LINE, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
<TABLE>
<CAPTION>
Nov 29, March 1,
1997 1997
---------- ----------
(Unaudited)
<S> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 53,670 $ 27,589
Employee compensation and related payroll taxes 4,164 4,853
Accrued income taxes -- 5,176
Accrued property and sales tax 3,106 2,448
Other liabilities and accrued expenses 3,790 3,839
-------- --------
Total current liabilities 64,730 43,905
Long-term deferred rent payments 4,478 3,938
STOCKHOLDERS' EQUITY
Preferred stock, $.01 par value; 1,000 shares
authorized; none issued -- --
Common Stock, $.01 par value
Class A:
Shares authorized - 30,000
Shares issued and outstanding (November 29, 1997 - 18,164;
March 1, 1997 - 17,192) 182 172
Class B:
Shares authorized - 12,000
Shares issued and outstanding (November 29, 1997 - 7,842;
March 1, 1997 - 8,750) 78 87
Additional paid-in capital 119,134 118,132
Retained earnings 68,553 51,484
-------- --------
Total stockholders' equity 187,947 169,875
-------- --------
Total liabilities and stockholders' equity $257,155 $217,718
======== ========
</TABLE>
See accompanying notes.
Page 3 of 12
<PAGE>
THE FINISH LINE, INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
<TABLE>
<CAPTION>
Thirteen Three Thirty- Nine
Weeks Months Nine Weeks Months
Ended Ended Ended Ended
Nov. 29, Nov. 30, Nov. 29, Nov. 30,
1997 1996 1997 1996
--------- --------- ----------- ---------
<S> <C> <C> <C> <C>
Net sales $95,928 $73,003 $302,192 $235,753
Cost of sales (including occupancy expenses) 67,557 51,129 208,638 162,884
------- ------- -------- --------
Gross profit 28,371 21,874 93,554 72,869
Selling, general, and administrative expenses 23,141 17,747 67,968 52,826
------- ------- -------- --------
Operating income 5,230 4,127 25,586 20,043
Interest (income) expense - net. (624) (189) (2,058) (132)
------- ------- -------- --------
Income before income taxes 5,854 4,316 27,644 20,175
Provision for income taxes 2,240 1,727 10,575 8,071
------- ------- -------- --------
Net income $ 3,614 $ 2,589 $ 17,069 $ 12,104
======= ======= ======== ========
Fully diluted net income per share $ .14 $ .11 $ .64 $ .53
======= ======= ======== ========
Fully diluted weighted average shares 26,555 24,149 26,586 22,975
======= ======= ======== ========
</TABLE>
See accompanying notes.
Page 4 of 12
<PAGE>
THE FINISH LINE, INC.
CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
<TABLE>
<CAPTION>
Thirty-Nine Nine Months
Weeks Ended Ended
11/29/97 11/30/96
------------ -----------
<S> <C> <C>
OPERATING ACTIVITIES:
Net Income $ 17,069 $ 12,104
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 5,410 3,845
Deferred income taxes 1,066 (1,501)
(Gain) loss on disposal of property and equipment (4) 33
Changes in operating assets and liabilities:
Accounts receivable (5,960) (6,005)
Merchandise inventories (61,013) (11,459)
Other current assets 404 (768)
Other assets (237) --
Accounts payable 26,081 611
Employee compensation and related payroll taxes (689) 345
Accrued income taxes payable/recoverable (7,450) 1,431
Other liabilities and accrued expenses 609 2,248
Deferred rent payments 540 540
--------- --------
Net cash provided by (used in) operating activities (24,174) 1,424
INVESTING ACTIVITIES:
Purchases of property and equipment (20,995) (7,151)
Proceeds from disposals of property and equipment 19 29
Purchases of marketable securities (2,630) (4,980)
Proceeds from maturity of short-term marketable securities 4,626 --
--------- --------
Net cash used in investing activities (18,980) (12,102)
FINANCING ACTIVITIES:
Proceeds from short-term debt 12,050 42,200
Principal payments on short-term debt (12,050) (51,700)
Net proceeds from public offering -- 33,559
Proceeds and tax benefit from exercise of stock options 657 3,446
Purchase of treasury stock (693) --
Contribution of treasury stock to pension plan 1,039 --
--------- --------
Net cash provided by financing activities 1,003 27,505
--------- --------
Net increase (decrease) in cash and cash equivalents (42,151) 16,827
Cash and cash equivalents at beginning of period 51,212 1,686
--------- --------
Cash and cash equivalents at end of period $ 9,061 $ 18,513
========= ========
</TABLE>
See accompanying notes.
Page 5 of 12
<PAGE>
THE FINISH LINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. Basis of Presentation
The accompanying unaudited financial statements of The Finish Line,
Inc. and its wholly-owned subsidiary Spike's Holding, Inc. (collectively the
"Company") have been prepared in accordance with generally accepted accounting
principles for interim financial information and with instructions to Form 10-Q
and Article 10 of Regulation S-X. Accordingly, they do not include all the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, all
adjustments, consisting only of normal recurring adjustments, considered
necessary for a fair presentation, have been included.
The Company has experienced, and expects to continue to experience,
significant variability in sales and net income from quarter to quarter.
Therefore, the results of the interim periods presented herein are not
necessarily indicative of the results to be expected for any other interim
period or the full year.
Except for the historical information contained herein, the matters
discussed in this filing are forward looking statements that involve risks and
uncertainties that could cause actual results to differ materially from those
expressed in any of the forward looking statements. Such risks and
uncertainties include, but are not limited to, product demand and market
acceptance risks, the effect of economic conditions, the effect of competitive
products and pricing, the availability of products, management of growth, and
the other risks detailed in the Company's Securities and Exchange Commission
filings.
These financial statements should be read in conjunction with the
financial statements and notes thereto for the year ended March 1, 1997.
2. Change in Fiscal Year End
Effective with the quarter ended March 1, 1997, the Company changed
its fiscal year from a fiscal year ending each February 28 to a 52/53 week
retail calendar year ending on the last Saturday closest to February 28. As a
result of this change, each of the Company's quarters will consist of thirteen
weeks. In a 53 week fiscal year, the fourth quarter will include fourteen
weeks. The thirteen weeks ended November 29, 1997 includes 91 days versus 91
days for the third quarter of fiscal 1997 which ended on November 30, 1996. The
thirty-nine weeks ended November 29, 1997 includes 273 days versus 275 days for
the nine months ended November 30, 1996. All results presented herein reflect
these differences in the reporting periods.
3. Accounting Change
In February 1997, the Financial Accounting Standards Board issued
Statement No. 128, Earnings per Share, which is required to be adopted on
February 28, 1998. At that time, the Company will be required to change the
method currently used to compute earnings per share and to restate all prior
periods. Under the new requirements for calculating primary earnings per share,
the dilutive effect of stock options will be excluded. The impact of Statement
128 on the calculation of primary (basic) and fully diluted (diluted) earnings
per share for these periods is not expected to be material.
Page 6 of 12
<PAGE>
ITEM 2.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Results of Operations
The following table and subsequent discussion sets forth operating
data of the Company as a percentage of net sales for the periods indicated
below. The following discussion and analysis should be read in conjunction with
the unaudited Financial Statements included elsewhere herein.
<TABLE>
<CAPTION>
Thirteen Three Thirty- Nine
Weeks Months Nine weeks Months
Ended Ended Ended Ended
Nov. 29, Nov. 30, Nov. 29, Nov. 30,
1997 1996 1997 1996
--------- --------- ----------- -----------
(Unaudited) (Unaudited)
<S> <C> <C> <C> <C>
Income Statement Data:
Net sales 100.0% 100.0% 100.0% 100.0%
Cost of sales (including
occupancy expenses) 70.4 70.0 69.0 69.1
----- ----- ----- -----
Gross profit 29.6 30.0 31.0 30.9
Selling, general and administrative expenses 24.1 24.3 22.5 22.4
----- ----- ----- -----
Operating income 5.5 5.7 8.5 8.5
Interest (income) expense - net (.6) (.2) (.6) (.1)
----- ----- ----- -----
Income before income taxes 6.1 5.9 9.1 8.6
Provision for income taxes 2.3 2.4 3.5 3.5
----- ----- ----- -----
Net income 3.8% 3.5% 5.6% 5.1%
===== ===== ===== =====
</TABLE>
Page 7 of 12
<PAGE>
THIRTEEN WEEKS ENDED 11/29/97 COMPARED TO THIRD QUARTER ENDED 11/30/96
Net sales increased 31.4% to $95.9 million for the thirteen weeks
ended November 29, 1997 from $73.0 million for the quarter ended November 30,
1996. This increase in net sales was primarily attributable to net sales from
new stores and comparable store sales increases. As of November 29, 1997, the
number of stores in operation increased 19.9% to 301 from 251 at November 30,
1996. During the thirteen weeks ended November 29, 1997, the Company's
comparable store sales increased 3.0% compared to the same period in the prior
year. Comparable footwear net sales for the thirteen weeks ended November 29,
1997 increased approximately 6.4% versus the quarter ended November 30, 1996.
Comparable activewear and accessories net sales decreased approximately 2.5% for
the comparable period. Net sales per square foot decreased to $72 from $73 for
the same period of the prior year.
Gross profit for the thirteen weeks ended November 29, 1997 was $28.4
million, an increase of $6.5 million over the quarter ended November 30, 1996.
During this same period, gross profit decreased to 29.6% of net sales versus
30.0% for the prior year. Of this .4% decrease, .5% was due to an increase in
occupancy costs as a percentage of net sales partially offset by a .1% increase
in margins for products sold.
Selling, general and administrative expenses increased $5.4 million
(30.4%) to $23.1 million (24.1% of net sales) for the thirteen weeks ended
November 29, 1997 from $17.7 million (24.3% of net sales) for the quarter ended
November 30, 1996. This dollar increase was primarily attributable to the
operating costs related to operating 50 additional stores at November 29, 1997
versus November 30, 1996. The decrease as a percentage of net sales is
primarily a result of the comparable store net sales increase of 3.0% for the
thirteen weeks ended November 29, 1997, along with improved expense controls.
Net interest income was $624,000 (.6% of net sales) for the thirteen weeks
ended November 29, 1997, compared to net interest income of $189,000 (.2% of net
sales) for the quarter ended November 30, 1996, an increase of $435,000. This
increase was a result of using the proceeds of the secondary offering completed
on June 19, 1996 to repay all existing outstanding indebtedness under its
unsecured committed Loan Agreement with the remainder of the proceeds (along
with the proceeds from the Company's public offering completed on December 18,
1996), being invested in interest bearing instruments.
The Company's provision for federal and state income taxes increased
to $2.2 million for the thirteen weeks ended November 29, 1997, from $1.7
million for the quarter ended November 30, 1996. The increase is due to the
increased level of income before income taxes for the thirteen weeks ended
November 29, 1997, partially offset by a decrease in the effective tax rate to
38.25% for the thirteen weeks ended November 29, 1997 from 40.0% for the quarter
ended November 30, 1996. The decrease in effective tax rate is a result of the
Company's significant investment in tax exempt instruments along with the
implementation of tax planning initiatives.
Fully diluted net income per share increased 27.3% to $.14 for the
thirteen weeks ended November 29, 1997 compared to fully diluted net income per
share of $.11 for the quarter ended November 30, 1996. Fully diluted weighted
average shares outstanding were 26,555,000 and 24,149,000 respectively, for the
periods ended November 29, 1997 and November 30, 1996. The increase in shares
outstanding resulted from the completion of a public stock offering in December
1996.
Page 8 of 12
<PAGE>
THIRTY NINE WEEKS ENDED 11/29/97 COMPARED TO NINE MONTHS ENDED 11/30/96
Net sales increased 28.2% to $302.2 million for the thirty nine weeks
ended November 29, 1997 from $235.8 million for the nine months ended November
30, 1996. Of this increase, $38.6 million was attributable to a 19.9% increase
in the number of stores open during the period from 251 at November 30, 1996 to
301 at November 29, 1997. The balance of the increase was attributable to a
$20.9 million increase in net sales from the 34 existing stores open only part
of the first nine months of last year and a comparable store increase of 3.3%
for the thirty nine weeks ended November 29, 1997. Comparable footwear net
sales for the thirty nine weeks ended November 29, 1997 increased approximately
5.0%. Comparable activewear and accessories net sales decreased approximately
.8% for the comparable period. Net sales per square foot decreased to $246 from
$254 for the same period of the prior year.
Gross profit for the thirty nine weeks ended November 29, 1997 was
$93.6 million, an increase of $20.7 million over the nine months ended November
30, 1996. During this same period, gross profit increased to 31.0% of net sales
versus 30.9% for the prior year. Of this .1% increase, .6% was due to higher
margins for products sold, offset by a .5% increase in occupancy costs as a
percentage of net sales.
Selling, general and administrative expenses increased $15.1 million
(28.7%) to $68.0 million (22.5% of net sales) for the thirty nine weeks ended
November 29, 1997 from $52.8 million (22.4% of net sales) for the nine months
ended November 30, 1996. This dollar increase was primarily attributable to the
operating costs related to operating 50 additional stores at November 29, 1997
versus November 30, 1996.
Net interest income was $2.1 million (.6% of net sales) for the thirty nine
weeks ended November 29, 1997, compared to net interest income of $132,000 (.1%
of net sales) for the nine months ended November 30, 1996, an increase of $1.9
million. This increase was a result of using the proceeds of the secondary
offering completed on June 19, 1996 to repay all existing outstanding
indebtedness under its unsecured committed Loan Agreement with the remainder of
the proceeds (along with the proceeds from the Company's public offering
completed on December 18, 1996), being invested in interest bearing instruments.
The Company's provision for federal and state income taxes increased
$2.5 million for the thirty nine weeks ended November 29, 1997. The increase is
due to the increased level in income before income taxes for the thirty nine
weeks ended November 29, 1997, partially offset by a decrease in the effective
tax rate to 38.25% for the thirty nine weeks ended November 29, 1997 from 40.0%
for the quarter ended November 30, 1996. The decrease in effective tax rate is
a result of the Company's significant investment in tax exempt instruments along
with the implementation of tax planning initiatives.
Fully diluted net income per share increased 20.8% to $.64 for the
thirty nine weeks ended November 29, 1997 compared to fully diluted net income
per share of $.53 for the nine months ended November 30, 1996. Fully diluted
weighted average shares outstanding were 26,586,000 and 22,975,000 respectively
for the periods ended November 29, 1997 and November 30, 1996. The increase in
shares outstanding resulted from the completion of two public stock offerings in
fiscal 1997.
Page 9 of 12
<PAGE>
Liquidity and Capital Resources
The Company used cash of $24.2 million in its operating activities
during the thirty nine weeks ended November 29, 1997 as compared to generating
cash from its operating activities of $1.4 million during the nine months ended
November 30, 1996. The increase in cash used in operating activities was
primarily the result of increased inventory levels (net of accounts payable)
partially offset by increased net income.
The Company had a net use of cash from its investing activities, of
$18.9 million and $12.1 million for thirty nine weeks ended November 29, 1997
and the nine months ended November 30, 1996, respectively. Of the $18.9 million
in 1997, $21.0 million was used for new store construction, which was partially
offset by $2.0 million net maturities of marketable securities.
The Company anticipates that total capital expenditures for fiscal
1998 will be approximately $30 - $33 million primarily for the opening of 53 new
stores, the remodeling of 19 stores and additions to the corporate offices and
distribution center.
Management believes that cash and cash equivalents on hand, operating
cash flow and available borrowings under the Company's existing credit facility
will be sufficient to complete the Company's fiscal 1998 and 1999 store
expansion program and to satisfy the Company's other capital requirements
through fiscal 1999.
The Company had positive working capital of $115.8 million at November
29, 1997, an increase of $3.7 million from the working capital of $112.1 million
at March 1, 1997.
Merchandise inventories were $143.0 million at November 29, 1997
compared to $82.0 million at March 1, 1997. On a per square foot basis,
merchandise inventories at November 29, 1997 increased approximately 12%
compared to November 30, 1996, and were approximately 20% higher than at March
1, 1997. The increase in inventory per square foot is a result of early
receipts of holiday season merchandise as well as build up due to delayed
opening of stores during the third quarter. The Company believes present levels
are appropriate for the selling season.
At November 29, 1997 the Company had cash and cash equivalents of $9.1
million and short-term investments of $10.5 million and no interest bearing
debt. The short-term investments range in maturity from 90 days to 180 days
while the majority of cash equivalents are invested in tax exempt instruments
with maturities of one to seven days.
In 1996, President Clinton signed a bill which among other items,
increased the minimum wage effective October 1, 1996 from $4.25 to $4.75 per
hour and subsequently to $5.15 per hour on September 1, 1997. Although many of
the Company's store employees are part-time and paid hourly, the passage of this
bill is not expected to have a material adverse effect on the Company's
financial condition or results of operation.
Page 10 of 12
<PAGE>
ITEM 1: Legal Proceedings
-----------------
None.
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
-----------------
None.
ITEM 6: Exhibits and Reports on Form 8-K:
---------------------------------
(a) Exhibits
11-Computation of Net Income Per Share.
27-Financial Data Schedule
(b) Reports on Form 8-K
None.
Page 11 of 12
<PAGE>
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.
THE FINISH LINE, INC.
Date: December 29, 1997 By: /s/ Steven J. Schneider
-------------------------
Steven J. Schneider
Sr. Vice President - Finance, Chief
Financial Officer and Secretary
Page 12 of 12
<PAGE>
EXHIBIT 11
COMPUTATION OF NET INCOME PER SHARE
(In thousands, except per share amounts)
<TABLE>
<CAPTION>
Thirteen Three Thirty- Nine
Weeks Months Nine Weeks Months
Ended Ended Ended Ended
Nov. 29, Nov. 30, Nov. 29, Nov. 30,
1997 1996 1997 1996
-------- -------- ---------- --------
<S> <C> <C> <C> <C>
Primary
Average shares outstanding 25,943 23,480 25,955 22,308
Net effect of dilutive stock options - based
on the treasury stock method using average
market price 599 663 596 582
------- ------- ------- -------
Total 26,542 24,143 26,551 22,890
======= ======= ======= =======
Net income $ 3,614 $ 2,589 $17,069 $12,104
======= ======= ======= =======
Per share amount $ .14 $ .11 $ .64 $ .53
======= ======= ======= =======
Fully Diluted
Average shares outstanding 25,943 23,480 25,955 22,308
Net effect of dilutive stock options - based
on the treasury stock method using the
higher of the average market price for the
period or the market price at the end of
the period 612 699 631 667
------- ------- ------- -------
Total 26,555 24,149 26,586 22,975
======= ======= ======= =======
Net Income $ 3,614 $ 2,589 $17,069 $12,104
======= ======= ======= =======
Per share amount $ .14 $ .11 $ .64 $ .53
======= ======= ======= =======
</TABLE>
Note: Only fully diluted earnings per share have been disclosed in the
Company's financial statements as primary earnings per share are substantially
the same.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FINANCIAL
STATEMENTS FOR THE THIRTY-NINE WEEK PERIOD ENDED NOV. 29, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-28-1998
<PERIOD-START> MAR-02-1997
<PERIOD-END> NOV-29-1997
<CASH> 9,061
<SECURITIES> 10,470
<RECEIVABLES> 10,809
<ALLOWANCES> 0
<INVENTORY> 143,004
<CURRENT-ASSETS> 180,555
<PP&E> 74,995
<DEPRECIATION> 19,907
<TOTAL-ASSETS> 257,155
<CURRENT-LIABILITIES> 64,730
<BONDS> 0
0
0
<COMMON> 260
<OTHER-SE> 187,687
<TOTAL-LIABILITY-AND-EQUITY> 257,155
<SALES> 302,192
<TOTAL-REVENUES> 302,192
<CGS> 208,638
<TOTAL-COSTS> 208,638
<OTHER-EXPENSES> 67,968
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (2,058)
<INCOME-PRETAX> 27,644
<INCOME-TAX> 10,575
<INCOME-CONTINUING> 17,069
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,069
<EPS-PRIMARY> 0
<EPS-DILUTED> $0.64
</TABLE>
