<PAGE> 1
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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 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 No. 0-20348
-------
D & K HEALTHCARE RESOURCES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 43-1465483
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
8000 MARYLAND AVENUE, SUITE 920, ST. LOUIS, MISSOURI
(Address of principal executive offices)
63105
(Zip Code)
(314) 727-3485
(Registrant's telephone number, including area code)
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.
X YES NO
---------- ----------
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
Common Stock, $.01 par value 3,065,717
---------------------------- ------------------
(class) (October 31, 1997)
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<TABLE>
D & K HEALTHCARE RESOURCES, INC. AND SUBSIDIARIES
Index
<CAPTION>
Page No.
--------
<S> <C>
Part l. Financial Information
---------------------
Item 1. Financial Statements
Condensed Consolidated Balance Sheets as of
September 30, 1997 and June 30, 1997 3
Condensed Consolidated Statements of Operations for the
Three Months Ended September 30, 1997 and 1996 4
Condensed Consolidated Statements of Cash Flows for the
Three Months Ended September 30, 1997 and 1996 5
Notes to Condensed Consolidated Financial Statements 6-9
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 10-13
Part ll. Other Information
------------------
Item 6. Exhibits and Reports on Form 8-K 14-15
</TABLE>
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Part l. Financial Information
- -------------------------------
Item 1. Financial Statements.
<TABLE>
D & K HEALTHCARE RESOURCES, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
<CAPTION>
Assets September 30, June 30,
------ 1997 1997
------------- ------------
(Unaudited) (Unaudited)
<S> <C> <C>
Cash $ 380 $ 1,646
Receivables 22,513 29,332
Inventories 53,398 41,391
Other current assets 1,169 1,152
------------ --------------
Total current assets 77,460 73,521
------------ --------------
Net property and equipment 5,360 5,419
Investment in affiliated company 4,209 4,090
Deferred income taxes 889 889
Other assets 306 317
Intangible assets 14,418 14,521
------------ --------------
Total assets $102,642 $98,757
============ ==============
Liabilities and Stockholders' Equity
------------------------------------
Current maturities of long-term debt $ 3,124 $ 3,127
Accounts payable 61,959 48,074
Deferred income taxes 3,842 3,842
Accrued expenses 3,145 2,675
------------ --------------
Total current liabilities 72,070 57,718
------------ --------------
Revolving line of credit 19,141 30,147
Long-term debt, excluding current maturities 1,529 1,529
------------ --------------
Total liabilities 92,740 89,394
------------ --------------
Stockholders' equity:
Common stock 31 30
Paid-in capital 11,848 11,819
Accumulated deficit (1,977) (2,486)
------------ --------------
Total stockholders' equity 9,902 9,363
------------ --------------
Total liabilities and stockholders' equity $102,642 $98,757
============ ==============
See notes to condensed consolidated financial statements.
</TABLE>
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<TABLE>
D & K HEALTHCARE RESOURCES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share data)
<CAPTION>
Three Months Ended
Sept. 30, Sept. 30,
1997 1996
-------------- --------------
<S> <C> <C>
Net sales $149,024 $113,904
Cost of sales 142,645 108,925
-------------- --------------
Gross profit 6,379 4,979
Operating expenses 5,010 4,192
-------------- --------------
Income from operations 1,369 787
Other income (expense):
Interest expense, net (633) (770)
Other, net 142 93
-------------- --------------
(491) (677)
-------------- --------------
Income before income tax provision 878 110
Income tax provision 369 55
-------------- --------------
Net income $509 $55
============== ==============
Earnings per common share:
Primary earnings per share $0.16 $0.04
Fully diluted earnings per share $0.14 $0.04
Primary common shares outstanding 3,175,395 3,069,958
Fully diluted common shares outstanding 3,757,916 3,069,958
See notes to condensed consolidated financial statements.
</TABLE>
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<TABLE>
D & K HEALTHCARE RESOURCES, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
<CAPTION>
Three Months Ended
Sept. 30, Sept. 30,
1997 1996
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $509 $55
Adjustments to reconcile net income
to net cash flows from operating activities:
Amortization of debt issuance costs 18 18
Depreciation and amortization 387 365
Stock option and warrant expense -- 1
Gain from sale of assets (3) (3)
Equity in net income of affiliated company (119) (84)
(Increase) decrease in accounts receivable, net 6,819 (3,152)
(Increase) decrease in inventories (12,007) 985
Decrease in income tax receivable -- 402
Increase in other current assets (25) (372)
Increase in accounts payable 13,885 7,782
Increase (decrease) in accrued expenses 476 (67)
Other, net 1 8
------------ ------------
Cash flows from operating activities 9,941 6,028
Cash flows from investing activities:
Proceeds from sale of assets 3 --
Purchases of property and equipment (224) (184)
------------ ------------
Cash flows from investing activities (221) (184)
Cash flows from financing activities:
Borrowings under revolving line of credit 85,059 61,934
Repayments under revolving line of credit (96,065) (65,689)
Payments of long-term debt (1) (23)
Payments of capital lease obligations (2) (23)
Proceeds from exercise of stock options 23 64
------------ ------------
Cash flows from financing activities (10,986) (3,737)
Increase (decrease) in cash (1,266) 2,107
Cash, beginning of period 1,646 1,197
------------ ------------
Cash, end of period $380 $3,304
============ ============
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for
Interest $687 $1,041
Income taxes 261 154
See notes to condensed consolidated financial statements.
</TABLE>
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D & K HEALTHCARE RESOURCES, INC. AND SUBSIDIARIES
Notes to Condensed Consolidated Financial Statements
(Unaudited)
Note 1. The Company is a full-service, regional wholesale drug distributor.
From facilities in Missouri, Kentucky and Minnesota, the Company
distributes a broad range of pharmaceuticals and related products
to its customers in 20 states. The Company focuses primarily on a
target market sector, which includes independent retail,
institutional, mail-order, franchise, chain store and alternate
site pharmacies in the Midwest and South. The Company operates in
one business segment. The Company also owns a 50% equity interest
in Pharmaceutical Buyers, Inc. (PBI), a group purchasing
organization with approximately 2,200 members nationwide.
The accompanying unaudited financial statements have been prepared
in accordance with the instructions to Form 10-Q and include all of
the information and disclosures required by generally accepted
accounting principles for interim reporting, which are less than
those required for annual reporting. In the opinion of management,
all adjustments (consisting only of normal recurring accruals)
considered necessary for a fair representation have been included.
The results of operations for the three-month period ended
September 30, 1997 are not necessarily indicative of the results to
be expected for the fiscal year.
Certain reclassifications have been made to the prior period's
financial statements to conform to the current year presentation.
These condensed consolidated financial statements should be read in
conjunction with the audited consolidated financial statements and
related notes of the Company for the fiscal year ended March 28,
1997 contained in the Company's 1997 Annual Report to Stockholders.
Note 2. As discussed in the Company's Proxy Statement dated July 11, 1997,
the Company's Board of Directors unanimously approved a proposed
amendment to its articles of incorporation to change the Company's
corporate name from D & K Wholesale Drug, Inc. to "D & K Healthcare
Resources, Inc". On August 14, 1997 the Company's stockholders
approved the amendment. The amendment was effective on August 22, 1997
after being approved by the Secretary of State of the State of
Delaware.
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Note 3. On June 30, 1997, the Company filed a Current Report on Form 8-K
announcing that it would change from a fiscal year ending the
Friday closest to March 31 in each year to a fiscal year ending
June 30 of each year. The Company began its first full fiscal year
on the new basis on July 1, 1997. The Company presented the
unaudited financial statements for the period of March 29, 1997 to
June 30, 1997 on its Form 10-Q Transition Report dated August 13,
1997. Accordingly, the unaudited Condensed Consolidated Balance
Sheet at June 30, 1997 has been included on this Form 10-Q.
Note 4. In August 1997, under the provisions of its Long-Term Incentive
Plan and its 1993 Stock Option Plan, the Company granted
non-qualified stock options for an aggregate of 66,999 and 30,000
shares, respectively, of common stock to certain executives and key
employees at an exercise price of $6.625 per share. The exercise
price of all options granted pursuant to the two plans was equal to
the fair market value of the stock on the date of grant. Stock
options granted under the Long-Term Incentive Plan are generally
not exercisable earlier than six months from the date of grant, nor
later than ten years from the date of grant. Stock options granted
under the 1993 Stock Option Plan are immediately exercisable from
the date of grant and expire not later than ten years from the date
of grant.
The following sets forth a summary of the options outstanding under
the Company's Long Term Incentive Plan and the 1993 Stock Option
Plan:
<TABLE>
<CAPTION>
WEIGHTED AVERAGE
NUMBER OF ------------------
SHARES EXERCISE PRICE
--------------------------------
<S> <C> <C>
OUTSTANDING AT JUNE 30, 1997 292,699 $4.36
GRANTED AUGUST 1997 96,999 $6.625
EXERCISED JULY THROUGH SEPT. 1997 (6,500) $3.58
------------
OUTSTANDING AT SEPTEMBER 30, 1997 383,198 $4.95
============
</TABLE>
Note 5. Primary earnings per common share are computed by dividing net
income by the sum of: (1) the weighted average number of common
shares outstanding during the period; and (2) the dilutive effect
of outstanding stock options and warrants (calculated using the
treasury stock method). Fully diluted earnings per common share
are computed using the components mentioned above for the primary
computation with the addition of common shares issuable upon
conversion of the Company's 11% convertible subordinated notes.
The fully diluted computation adds back to income interest on the
11% convertible subordinated notes and deducts the related income
tax effect as if such notes had been converted into common stock at
the beginning of the period. The holder of the 11% convertible
subordinated notes has indicated that the debt will be converted to
530,980 shares of the Company's common stock upon its maturity in
December 1997.
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Note 6. In May 1997, the Company amended the terms of its revolving line of
credit such that advances bear interest at the daily London
Interbank Offer Rate (LIBOR) plus 1.7%. The Company also has the
option to pay interest on the obligation at prime plus .5% per
annum. At September 30, 1997 and June 30, 1997, the borrowing base
formula amounted to $55,110,000 and $49,996,000, respectively. At
September 30, 1997 and June 30, 1997, the unused portion of the
line of credit amounted to $30,359,000 and $19,349,000,
respectively.
Note 7. On September 30, 1997, the Company was advised that a third party
had acquired substantially all of the assets of its then largest
customer and that the third party has secured a new supplier. On
September 30, 1997, the Company collected the entire amount of its
accounts receivable due from this customer, which amounted to
approximately $9.5 million. The funds were used to pay down the
Company's revolving line of credit. On October 1, 1997, the
Company filed a current report on Form 8-K relating to this
development.
This customer had represented 16.8% and 20.0%, respectively, of
the Company's net sales for the three-month periods ended September
30, 1997 and 1996. Despite the revenues the Company had derived
from such customer, it had represented a below average profit
contribution to the Company as well as above average extended
payment terms compared to other large customers of the Company.
The Company anticipates that its working capital needs and related
borrowings will be reduced significantly and interest expense
related to such borrowings will decrease accordingly. The Company
expects that anticipated growth in higher margin sales to existing
and new customers, including approximately 20 independent retail
pharmacies (formerly shareholders of Associated Pharmacies, Inc. -
see Note 9 below) and a large grocery store pharmacy chain, will
replace a substantial portion of the lost revenues. Accordingly,
the Company does not believe that the loss of such customer will
have a material adverse effect on its consolidated results of
operations or financial condition.
Note 8. The Company accounts for its investment in PBI under the equity
method. The Company's equity in the net income of PBI totaled
$119,000 and $84,000, respectively, for the three-month periods
ended September 30, 1997 and 1996. Summarized balance sheet
information (unaudited) for PBI at September 30, 1997 included
current assets of $2.8 million, noncurrent assets of $1.0 million,
current liabilities of $1.2 million and noncurrent liabilities of
$7.0 million. Summarized income statement information (unaudited)
for PBI for the three-month periods ended September 30, 1997 and
1996 included net revenues of $1.5 million and $1.4 million,
respectively, and net income of $0.4 million and $0.3 million,
respectively.
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Note 9. On October 14, 1997, the Company completed the acquisition of 100%
of the capital stock of Associated Pharmacies, Inc. (API), a Little
Rock, Arkansas based wholesale pharmaceutical distributor which was
owned by approximately 38 shareholders, including approximately 20
independent retail pharmacies. In connection with the acquisition,
the Company entered into multi-year supply agreements with
approximately 20 of the former shareholders of API. The purchase
price of the transaction was $1.1 million, consisting of cash of
$0.8 million and subordinated promissory notes of $0.3 million
issued by the Company.
Note 10 In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128, "Earnings Per
Share" (SFAS 128), which establishes standards for computing and
presenting earnings per share. SFAS 128 replaces the presentation
of primary earnings per share with a presentation of basic earnings
per share. It also requires dual presentation of basic and diluted
earnings per share on the face of the income statement for all
entities with complex capital structures and requires a
reconciliation of the numerator and denominator of the basic and
diluted earnings per share computations. The Company is required
to adopt the provisions of SFAS 128 during the quarter ended
December 31, 1997 and all prior period earnings per share data
presented will be restated. The adoption of SFAS 128 is not
expected to have a significant impact on the Company's previously
reported or prospective earnings per share amounts.
Note 11 The Company is currently in the process of evaluating several
information system improvement initiatives. These initiatives
include the conversion of certain Company computer systems to be
Year 2000 compliant. The Company does not believe that these Year
2000 costs will have a significant impact on its consolidated
results of operations or financial condition.
<PAGE> 10
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D & K HEALTHCARE RESOURCES, INC. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
The discussion below is concerned with material changes in
financial condition and results of operations in the condensed
consolidated balance sheets as of September 30, 1997 and June 30,
1997, and in the condensed consolidated statements of operations
for the three-month periods ended September 30, 1997 and 1996,
respectively. The Company recommends that this discussion be read
in conjunction with the audited consolidated financial statements
and accompanying notes included in the Company's 1997 Annual Report
to Stockholders.
Statements contained in this Report that state the Company's or
management's intentions, expectations, beliefs or predictions about
future events, including expected reductions in interest expense,
tax rates and capital resources, are forward-looking statements and
are inherently subject to risks and uncertainties. The Company's
actual results could differ materially from those contained in such
forward-looking statements due to a number of factors, including
without limitation, increases in interest rates or the level of
Company borrowings, changes in tax laws, the nature of the
wholesale pharmaceutical drug distribution industry, the evolving
business and regulatory environment of the healthcare industry and
changes in the Company's business and capital needs.
Results of Operations:
---------------------
Net Sales Net sales increased $35.1 million or 30.8% for the
---------
quarter. All major classes of trade experienced sales increases for
the current three-month period compared to the corresponding period
in the prior fiscal year. Most notably, mail-order sales increased
$8.9 million due to the addition of a mail-order service and
prescription management customer in August 1996, while chain drug
sales, hospital sales and independent pharmacy sales improved by
$6.4 million, $4.8 million and $14.8 million, respectively. The
increase in chain sales was realized primarily from increased sales
to various existing drug store chain accounts. The hospital sales
increase was realized from new and existing hospital, clinic and
nursing home accounts. The independent pharmacy sales improvement
was realized from new and existing retail accounts, including $9.9
million from an independent, retail purchasing association added as
a customer in May 1997. Franchise store sales increased by $0.2
million for the quarter. Incremental sales to certain customers
who were announced during the last month of the quarter were not
significant in the current three-month period.
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Gross Profit Gross profit increased 28.1% to $6.4 million for
------------
the quarter. As a percentage of net sales, gross margin decreased
from 4.37% to 4.28% for the three-month period compared to the
corresponding period in the previous fiscal year. The decrease in
gross margin percentage was due to the increase in the proportion
of sales to lower margin customers, including chain drug store
accounts, hospitals and a mail-order customer. The Company
believes that continuing price competition in the wholesale drug
distribution industry has driven the trend towards reduced gross
margin percentages. The gross margin computed on a first-in,
first-out (FIFO) basis increased from 4.38% to 4.41% for the
quarter which reflects the favorable impact of changes in the
Company's sales mix toward higher margin products.
Operating Expenses Operating expenses increased $0.8 million or
------------------
19.5% to $5.0 million for the quarter. As a percentage of net
sales, operating expenses decreased from 3.68% to 3.36% for the
current three-month period as compared to the corresponding period
of the prior year. The increase in operating expenses for the
three-month period resulted primarily from incremental warehouse
and distribution costs associated with the increased sales activity
at each division, higher corporate operating expenses related to
additional personnel in the purchasing, sales, information services
and general and administrative areas and legal fees associated with
the conclusion of the Company's relationship with its previously
largest customer.
Interest Expense, Net Net interest expense decreased $138,000 or
---------------------
17.9% for the quarter. As a percentage of net sales, net interest
expense decreased from 0.68% to 0.42% for the three-month period.
The decrease in net interest expense was primarily the result of
reduced average borrowings compared to the corresponding period of
the prior fiscal year coupled with the amended terms of the
Company's senior debt agreement in May 1997 which reduced the
interest rate on the line of credit to the LIBO rate plus 1.7%.
The receipt of the approximate $9.5 million accounts receivable
balance from the Company's previously largest customer at September
30, 1997 is expected to further reduce interest expense
prospectively.
Other Income, Net Other income, net increased to $142,000 for
-----------------
the quarter ended September 30, 1997 compared to $93,000 for the
corresponding period in the prior fiscal year. The increase in
other income, net was primarily due to higher earnings from the
Company's equity interest in PBI.
Effects of Inflation and LIFO Accounting The effects of price
----------------------------------------
inflation, measured by the excess of LIFO costs over FIFO costs,
were $190,000 and $15,000, respectively, for the three months ended
September 30, 1997 and 1996. The increase in the provision for
LIFO in the recent three-month period was due primarily to the
increase in inventory levels for the period as compared to the
corresponding period in the prior fiscal year.
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Provision for Income Taxes The Company's effective income tax
--------------------------
rate of 42.0%, which was applied to pretax income in the three
month-period ended September 30, 1997, is the rate expected to be
applicable for the full fiscal year ending June 30, 1998. This rate
was greater than the federal income tax rate of 34% primarily
because of the amortization of intangible assets that are not
deductible for federal and state income tax purposes and the effect
of state income taxes.
Financial Condition:
-------------------
Liquidity and Capital Resources The Company's working capital
-------------------------------
requirements are generally met through a combination of internally
generated funds, borrowings under its revolving line of credit, and
trade credit from its suppliers. The following ratios are utilized
by the Company as key indicators of the Company's liquidity and
working capital management:
<TABLE>
<CAPTION>
September 30, June 30,
1997 1997
---- ----
<S> <C> <C>
Working capital (000's) $ 5,390 $15,803
Current ratio 1.07 to 1 1.27 to 1
Working capital to assets .05 to 1 .22 to 1
Net debt to FIFO equity .47 to 1 .54 to 1
</TABLE>
The decrease in working capital was due primarily to a net decrease in
cash and accounts receivable of $8.1 million coupled with a $13.9
million increase in accounts payable offset by a $12.0 million
increase in inventories. The decrease in accounts receivable was
primarily due to the collection of the $9.5 million accounts
receivable due from the Company's previously largest customer at
September 30, 1997 offset by an increase in net sales. The increase
in accounts payable reflects the timing of cash disbursements and the
improved utilization of trade credit in providing working capital.
The increase in inventories was due to the increased level of business
and the expansion of inventory procurement opportunities during the
current quarter. The favorable trend in working capital generated net
cash flows from operating activities of $9.9 million for the
three-month period ended September 30, 1997 as compared to $6.0
million in the corresponding period in the prior fiscal year.
The Company invested $224,000 in capital assets in the three-month
period ended September 30, 1997 as compared to $184,000 in the
corresponding period in the prior fiscal year. The Company believes
that continuing investment in capital assets is necessary to achieve
its goal of improving operational efficiency, thereby enhancing its
productivity and profitability.
<PAGE> 13
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Cash flows used in financing activities totaled $11.0 million in the
three-month period ended September 30, 1997 as compared to $3.7
million used in the corresponding period in the prior fiscal year.
The increase in cash used for financing activities reflects the timing
of cash disbursements and the September 30, 1997 receipt, and
subsequent paydown on the line of credit, of the $9.5 million
outstanding accounts receivable balance from a former customer as
noted above. At September 30, 1997, the revolving line of credit
provided a maximum borrowing capacity of $50,000,000 plus a
supplemental facility of up to $10,000,000 during the months of
November through June of each year. At September 30, 1997 and June 30,
1997, the unused portion of the line of credit amounted to $30,359,000
and $19,349,000, respectively. To support its continuing growth, the
Company's existing line of credit has been amended, effective November
4, 1997, to provide a maximum borrowing capacity of $70,000,000 plus a
supplemental facility of up to $5,000,000 during the months of
November through June of each year. Management believes that,
together with internally generated funds, the Company's capital
resources will be sufficient to meet its foreseeable capital
requirements.
<PAGE> 14
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D & K HEALTHCARE RESOURCES, INC. AND SUBSIDIARIES
Part ll. Other Information
- ------- ------------------
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27 - Financial Data Schedule
(b) Reports on Form 8-K
Current Report on Form 8-K relating to a development
regarding a major customer, dated October 1, 1997.
<PAGE> 15
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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.
D & K HEALTHCARE RESOURCES, INC.
Date: November 10, 1997 By: /s/ J. Hord Armstrong, III
-------------------- --------------------------------
J. Hord Armstrong, III
Chairman of the Board and
Chief Executive Officer
(Principal Financial Officer)
By: /s/ Daniel E. Kreher
---------------------------------
Daniel E. Kreher
Vice President
Finance and Administration
(Principal Accounting Officer)
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JUN-30-1998
<PERIOD-START> JUL-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 380
<SECURITIES> 0
<RECEIVABLES> 23,210
<ALLOWANCES> 697
<INVENTORY> 53,398
<CURRENT-ASSETS> 77,460
<PP&E> 10,820
<DEPRECIATION> 5,460
<TOTAL-ASSETS> 102,642
<CURRENT-LIABILITIES> 72,070
<BONDS> 0
<COMMON> 31
0
0
<OTHER-SE> 9,871
<TOTAL-LIABILITY-AND-EQUITY> 102,642
<SALES> 149,024
<TOTAL-REVENUES> 149,166
<CGS> 142,645
<TOTAL-COSTS> 147,655
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 633
<INCOME-PRETAX> 878
<INCOME-TAX> 369
<INCOME-CONTINUING> 509
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 509
<EPS-PRIMARY> 0.16
<EPS-DILUTED> 0.14
</TABLE>
