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FORM 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For quarterly period ended March 31, 2000 Commission File Number 0-22962
HUMAN GENOME SCIENCES, INC.
(Exact name of registrant)
Delaware 22-3178468
(State of organization) (I.R.S. Employer Identification Number)
9410 Key West Avenue, Rockville, Maryland 20850-3331
(Address of principal executive offices and zip code)
(301) 309-8504
(Registrant's telephone Number)
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
----- -----
The number of shares of the registrant's common stock outstanding on March 31,
2000 was 54,548,184.
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<PAGE> 2
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
Number
------
<S> <C> <C>
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Statements of Operations for the three months
ended March 31, 2000 and 1999....................................... 3
Balance Sheets at March 31, 2000 and December 31, 1999.................. 4
Statements of Cash Flows for the three months
ended March 31, 2000 and 1999....................................... 5
Notes to Financial Statements........................................... 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations....................... 10
Item 3. Quantitative and Qualitative Disclosures About Market Risk.............. 12
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K........................................ 13
Signatures.............................................................. 14
Exhibit Index........................................................... Exhibit Volume
</TABLE>
2
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PART I. FINANCIAL INFORMATION
HUMAN GENOME SCIENCES, INC.
STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
Three months ended
March 31,
--------------------------------
2000 1999
------------ ------------
(dollars in thousands, except
share and per share amounts)
<S> <C> <C>
Revenue - research and development
collaborative contracts ......... $ 642 $ 1,422
------------ ------------
Costs and expenses:
Research and development .......... 19,514 13,374
General and administrative ........ 6,016 2,786
------------ ------------
Total costs and expenses .... 25,530 16,160
------------ ------------
Income (loss) from operations ........ (24,888) (14,738)
Interest income ...................... 9,773 2,512
Interest expense ..................... (2,965) (27)
Debt conversion expenses ............. (50,818) -0-
------------ ------------
Income (loss) before taxes ........... (68,898) (12,253)
Provision for income taxes ........... -0- -0-
------------ ------------
Net income (loss) .................... $ (68,898) $ (12,253)
============ ============
Net income (loss) per share, basic and
diluted .......................... $ (1.34) $ (0.27)
============ ============
Weighted average shares outstanding,
basic and diluted ................ 51,511,769 45,652,344
============ ============
</TABLE>
See accompanying notes to financial statements.
3
<PAGE> 4
HUMAN GENOME SCIENCES, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
----------- -----------
ASSETS (dollars in thousands)
- ------
<S> <C> <C>
Current assets:
Cash and cash equivalents ................................... $ 442,333 $ 180,839
Short-term investments ...................................... 461,011 273,716
Prepaid expenses and other current assets ................... 5,893 4,294
----------- -----------
Total current assets .................................... 909,237 458,849
Long-term investments ............................................ 34,090 17,709
Property, plant and equipment (net of accumulated depreciation) .. 27,364 25,557
Restricted investments ........................................... 11,790 11,637
Other assets ..................................................... 37,932 13,973
----------- -----------
TOTAL ASSETS ............................................ $ 1,020,413 $ 527,725
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current liabilities:
Current portion of long-term debt ........................... $ 444 $ 444
Accounts payable and accrued expenses ....................... 11,254 7,511
Accrued payroll and related taxes ........................... 2,586 2,380
Deferred revenues ........................................... 3,568 3,568
----------- -----------
Total current liabilities ............................... 17,852 13,903
Long-term debt, net of current portion ........................... 533,051 326,336
Deferred revenues ................................................ 17,333 17,975
Other liabilities ................................................ 480 443
----------- -----------
Total liabilities ....................................... 568,716 358,657
----------- -----------
Stockholders' Equity:
Common stock ............................................... 545 466
Additional paid-in capital ................................. 634,563 299,791
Unearned portion of compensatory stock ..................... (287) (335)
Retained earnings (deficit) ................................ (189,771) (120,873)
Accumulated other comprehensive income (deficit) ........... 6,647 (9,981)
----------- -----------
Total stockholders' equity .............................. 451,697 169,068
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY .............. $ 1,020,413 $ 527,725
=========== ===========
</TABLE>
See accompanying notes to financial statements.
4
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HUMAN GENOME SCIENCES, INC.
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Three months ended
March 31,
2000 1999
--------- ---------
(dollars in thousands)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) ................................................... $ (68,898) $ (12,253)
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities:
Accrued interest on U.S. Treasury bills and commercial paper .... (2,885) 338
Depreciation and amortization ................................... 2,491 1,638
Inducement costs paid in the form of common stock ............... 19,433 -0-
Loss (gain) on disposal of fixed assets ......................... -0- 4
Compensation expense related to stock options ................... 48 13
Changes in operating assets and liabilities:
Prepaid expenses and other current assets .................... (1,177) (448)
Other assets ................................................. (17,441) 43
Accounts payable and accrued expenses ........................ 4,160 (926)
Accrued payroll and related taxes ............................ 206 1,023
Deferred revenues ............................................ (642) (1,414)
Other liabilities ............................................ 37 (9)
--------- ---------
Net cash provided by (used in) operating activities ............. (64,668) (11,991)
--------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures - property, plant and equipment ................ (4,591) (1,834)
Purchase of short-term investments and marketable securities ........ (231,191) (16,844)
Proceeds from sales and maturities of investments and marketable
securities ...................................................... 46,607 36,967
--------- ---------
Net cash provided by (used in) investing activities ............. (189,175) 18,289
--------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES:
Restricted investments .............................................. (153) (71)
Proceeds from issuance of long term debt (net of expenses) .......... 508,850 -0-
Proceeds from issuance of common stock (net of expenses) ............ 6,640 2,609
--------- ---------
Net cash provided by (used in) financing activities ............. 515,337 2,538
--------- ---------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS .................... 261,494 8,836
Cash and cash equivalents - beginning of period ......................... 180,839 16,139
--------- ---------
CASH AND CASH EQUIVALENTS - END OF PERIOD ............................... $ 442,333 $ 24,975
========= =========
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest ........................................................ $ 30,067 $ 17
Income taxes .................................................... -0- 50
</TABLE>
See accompanying notes to financial statements.
5
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SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING ACTIVITIES (DOLLARS IN THOUSANDS):
In January 2000, the Company converted $118,285 of 5 1/2% Convertible
Subordinated Notes Due 2006 to common stock and incurred $19,433 in inducement
costs paid in the form of common stock as an inducement to convert. In addition,
the Company reclassified $3,470 of unamortized debt financing costs associated
with these notes to stockholders' equity as part of the conversion.
In March 2000, the Company converted $200,000 of 5% Convertible Subordinated
Notes Due 2006 to common stock. In connection with this conversion, the Company
made a $30.0 million cash "make-whole" payment. In addition, the Company
reclassified $6,037 of unamortized debt financing costs associated with these
notes to stockholders' equity as part of the conversion.
See accompanying notes to financial statements
6
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HUMAN GENOME SCIENCES, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE QUARTER ENDED MARCH 31, 2000
(In thousands, except share and per share data)
NOTE 1. INTERIM FINANCIAL STATEMENTS
The accompanying unaudited financial statements of Human Genome
Sciences, Inc. (the "Company") have been prepared in accordance with
generally accepted accounting principles for interim financial
information. In the opinion of the Company's management, the financial
statements reflect all adjustments necessary to present fairly the
results of operations for the three month period ended March 31, 2000
and 1999, the Company's financial position at March 31, 2000, and the
cash flows for the three month periods ended March 31, 2000 and 1999.
These adjustments are of a normal recurring nature.
Certain notes and other information have been condensed or omitted from
the interim financial statements presented in this Quarterly Report on
Form 10-Q. Therefore, these financial statements should be read in
conjunction with the Company's 1999 Annual Report on Form 10-K.
The results of operations for the three month period ended March 31,
2000 are not necessarily indicative of future financial results.
Share and per share amounts have been restated to reflect a two-for-one
stock split paid in the form of a stock dividend on January 28, 2000.
NOTE 2. COMPREHENSIVE INCOME (LOSS)
During the three months ended March 31, 2000 and 1999, total
comprehensive income (loss) amounted to:
<TABLE>
<CAPTION>
Three months ended
March 31,
------------------------
2000 1999
-------- --------
<S> <C> <C>
Net income (loss) $(68,898) $(12,253)
Unrealized gain (loss) on short-term investments 247 (276)
Unrealized gain (loss) on long-term investments 16,381 (5,091)
-------- --------
Total comprehensive income (loss) $(52,270) $(17,620)
======== ========
</TABLE>
NOTE 3. NEW SEC INTERPRETATIONS
In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin 101, "Revenue Recognition in Financial
Statements" ("SAB 101"), which provides guidance related to revenue
recognition based on interpretations and practices followed by the SEC.
SAB 101 is effective the second fiscal quarter of fiscal years
beginning after December 15, 1999, the second quarter of 2000 for the
Company, and requires companies to report any changes in revenue
recognition as a cumulative change in accounting principle at the time
of implementation in accordance with APB Opinion No. 20, "Accounting
Changes." The Company is currently in the process of evaluating what
impact, if any, SAB 101 will have on the financial position or results
of operations of the Company.
7
<PAGE> 8
HUMAN GENOME SCIENCES, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE QUARTER ENDED MARCH 31, 2000
(In thousands, except share and per share data)
NOTE 4. COLLABORATIVE AGREEMENTS
On February 29, 2000, the Company entered into an agreement with
Cambridge Antibody Technology plc ("CAT"). The ten-year agreement
provides the Company with rights to use CAT technology to develop and
sell an unlimited number of fully human antibodies for therapeutic and
diagnostic purposes. The Company also has rights to use CAT antibody
technology for the use and sale of research tools, for which the
Company will pay to CAT a share of revenues received. The Company will
also pay CAT clinical development milestones and royalties based on
product sales. The Company and CAT also plan to combine resources to
develop and sell therapeutic antibody products. CAT has the right to
select up to twenty-four of the Company's proprietary antigens for
laboratory development. The Company has the option to share clinical
development costs and to share the profits equally with CAT on up to
eighteen such products. CAT has rights to develop six such products on
its own. The Company is entitled to clinical development milestones and
royalty payments on the products developed by CAT.
In March 2000, the Company paid $12,000 in licensing fees to CAT, which
includes research support at CAT for ten years to help them to develop
the Company's human antibody products. Subsequent to March 31, 2000,
the Company purchased 1,670,000 ordinary shares of CAT for the sterling
equivalent of approximately $54,744, giving the Company an equity stake
of approximately six percent in CAT.
NOTE 5. LONG-TERM DEBT
The Company completed the private placement of $225,000 of 5%
Convertible Subordinated Notes Due 2007 ("5% Notes") and $300,000 of 3
3/4% Convertible Subordinated Notes Due 2007 ("3 3/4% Notes") during
the quarter ended March 31, 2000. The 5% Notes and the 3 3/4% Notes are
convertible into common stock at $112.50 and $219.00 per share,
respectively. Debt issuance costs for the total $525,000 of Notes
amounted to approximately $16,550, including accrued expenses.
5 1/2% Convertible Subordinated Notes Due 2006
In January 2000, the Company concluded an offer to the holders of its
$125,000 aggregate principal amount of 5 1/2% Notes to convert their
notes into common stock. As an inducement to convert, the Company
offered its 5 1/2% Note holders an additional one hundred and eighty
dollars per thousand dollars of principal amount of the 5 1/2% Notes,
payable in the Company's common stock. This inducement was in addition
to the 38.3142 shares issuable for each thousand dollars of principal
amount of 5 1/2% Notes convertible at $26.10 per share. As a result of
the conversions, the Company converted $118,285 of 5 1/2% Notes to
common stock and issued a total of 4,786,104 shares of common stock,
including a total of 254,122 shares of common stock issued as an
inducement to convert. In the first quarter of fiscal 2000, the Company
recorded a one-time charge of $20,818, including $19,433 in inducement
costs associated with this conversion. In addition, the Company
reclassified $3,470 of unamortized debt financing costs to
stockholders' equity as part of the conversion.
5% Convertible Subordinated Notes Due 2006
In March 2000, the Company announced and completed the call of its
$200,000 aggregate principal amount of 5% Convertible Subordinated
Notes Due 2006. All of the holders of the notes converted their notes
into common stock at a price of $71.625 per share, which is equivalent
to 13.9616 shares of common stock per one thousand dollars of principal
amount of notes. As a result of the conversion, the Company issued
2,792,292 shares of common stock to the holders of these Notes. In
addition, the Company made a "make-whole" payment of one hundred and
fifty dollars per one thousand dollars of principal amount of notes,
which resulted in a one-time charge to earnings of $30,000. In
addition, the
8
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HUMAN GENOME SCIENCES, INC.
NOTES TO FINANCIAL STATEMENTS
FOR THE QUARTER ENDED MARCH 31, 2000
(In thousands, except share and per share data)
NOTE 5. LONG-TERM DEBT, CONTINUED
Company reclassified $6,037 of unamortized debt financing costs to
stockholders' equity as part of the conversion.
NOTE 6. STOCKHOLDERS' EQUITY
On January 5, 2000, the Company's Board of Directors approved a
two-for-one stock split to be effected in the form of a stock dividend
payable to stockholders of record as of January 14, 2000. On January
28, 2000, the Company effected the two-for-one stock split. All share,
per share, and common stock amounts presented in the financial
statements and related footnotes for all periods presented have been
restated to reflect the Company's two-for-one stock split.
9
<PAGE> 10
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
THREE MONTH PERIODS ENDED MARCH 31, 2000 AND 1999.
RESULTS OF OPERATIONS
Revenues. We had revenues of $0.6 million for the three months ended March
31, 2000 compared with revenues of $1.4 million for the three months ended March
31, 1999. Revenues for both the three months ended March 31, 2000 and March 31,
1999 represented the recognition of $0.6 million in revenue from Transgene,
S.A., and additionally, during the three months ending March 31, 1999, the
recognition of $0.8 million from Pharmacia and Upjohn for research services
pursuant to their collaboration agreement.
We expect that our revenues may be limited to annual license fees and
research payments from our collaborations with Schering Corporation and Schering
Plough Ltd., Sanofi-Synthelabo S.A., and Merck KgaA, interest income, payments
under existing collaboration agreements which are contingent on meeting certain
product milestones, license fees, proceeds from the sale of rights and other
payments from other collaborators and licensees under existing or future
arrangements, to the extent that we enter into any such further arrangements.
Revenues from Schering, Synthelabo, and Merck will substantially conclude during
fiscal year 2000.
Expenses. Research and development expenses were $19.5 million for the three
months ended March 31, 2000 compared to $13.4 million for the three months ended
March 31, 1999. The increase is due primarily to operational costs related to
the start up of our leased 84,000 square foot manufacturing and process
development facility in April 1999, as well as increased expenditures in both
preclinical and clinical trial research.
General and administrative expenses increased to $6.0 million for the three
months ended March 31, 2000 from $2.8 million for the three months ended March
31, 1999. The increase for the three month period ended March 31, 2000 resulted
generally from higher legal expenses associated with filing and prosecuting a
larger number of patent applications relating to genes and proteins we
discovered, along with transaction-related expenses in support of our expanding
activities. Interest income increased for the three months ended March 31, 2000
compared to the three months ended March 31, 1999 due to higher cash balances.
Interest expense increased for the three month periods primarily due to the
issuance of $525.0 million of convertible subordinated notes during the first
quarter of fiscal 2000.
Debt conversion expenses of $50.8 million relate to the conversion costs of
$318.3 million aggregate principal amount of convertible subordinated notes into
equity. We converted $118.3 million of our $125.0 million aggregate principal
amount of 5 1/2% Notes Due 2006 to common stock at a cost of $20.8 million,
substantially all of which was paid in the form of common stock. In addition, we
converted all of our $200.0 million aggregate principal amount of 5% Notes
Due 2006 to common stock at a cost of $30.0 million, all of which was paid in
cash.
Net Income. We recorded a net loss of $68.9 million, or $1.34 per share, for
the three months ended March 31, 2000 compared to a net loss of $12.3 million,
or $0.27 per share, for the three months ended March 31, 1999. The increased
loss for the three month period of 2000 reflects the expense of $50.8 million,
or $0.99 per share, relating to the conversion of convertible subordinated notes
into equity, along with increased investment in the development of preclinical
and clinical drug candidates and the operation of the manufacturing and process
development facility. Excluding the debt conversion expenses, our net loss for
the first quarter of fiscal 2000 would have been $18.1 million, or $0.35 per
share, compared to $12.3 million, or $0.27 per share, for the first quarter of
fiscal 1999.
10
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LIQUIDITY AND CAPITAL RESOURCES
We had working capital of $891.4 million at March 31, 2000 as compared
to $444.9 million at December 31, 1999. The increase resulted from the placement
of $525.0 million of convertible subordinated notes partially offset by the net
operating loss generated during the three month period and capital expenditures,
and our $30.0 million cash "make-whole" payment in connection with the
conversion of $200.0 million of convertible subordinated notes into equity.
We expect to continue to incur substantial expenses relating to our
research and development efforts, which are expected to increase relative to
historical levels as we focus on preclinical and clinical trials required for
the development of therapeutic protein product candidates.
We expect that our existing funds, interest income, and committed
license fees and research payments from existing collaboration agreements will
be sufficient to fund our operations for the foreseeable future. Our future
capital requirements and the adequacy of our available funds will depend on many
factors, including scientific progress in our research and development programs,
the magnitude of those programs, our ability to establish additional
collaborative and licensing arrangements, the cost involved in preparing,
filing, prosecuting, maintaining and enforcing patent claims and competing
technological and market developments.
Our funds are currently invested in U.S. Treasury and government agency
obligations, high grade corporate debt securities and commercial paper. Such
investments reflect our policy regarding the investment of liquid assets, which
is to seek a reasonable rate of return consistent with an emphasis on safety,
liquidity and preservation of capital.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements contained in "Management's Discussion and Analysis
of Financial Condition and Results of Operations", including statements
concerning future collaboration agreements, royalties and other payments under
collaboration agreements, and product development and sales and other statements
are forward looking statements, as defined in the Private Securities Litigation
Reform Act of 1995. Actual results may differ materially from those projected in
the forward looking statements as a result of risks and uncertainties, including
but not limited to, the following: our scientific progress in our research and
development programs; the magnitude of these programs; the ability to establish
additional collaborative and licensing arrangements; the degree of success of
our collaboration partners in identification, research, development and
marketing of products based on our technology; the extent to which we engage in
clinical development of any products on our own; the degree of success in using
our technology and database to select viable product opportunities; our ability
to develop or arrange for marketing and sales initiatives with respect to
products under development; the success in raising additional capital and
satisfying liquidity needs in the future; the scope and results of pre-clinical
testing and clinical trials; the time and costs involved in obtaining regulatory
approvals; the costs and uncertainties involved in preparing, filing,
prosecuting, maintaining and enforcing patent claims; competing technological
and market developments; and whether conditions to milestone payments are met
and the timing of such payments; other risks and uncertainties detailed
elsewhere herein and from time to time in our filings with the Securities and
Exchange Commission.
11
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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
We do not have operations subject to risks of foreign currency fluctuations,
nor do we use derivative financial instruments in our operations or investment
portfolio. We do not have significant exposure to market risks associated with
changes in interest rates related to our corporate debt securities held as of
March 31, 2000. We believe that any market change related to our U.S. securities
held as of March 31, 2000 is not material to our financial statements. As of
March 31, 2000, the carrying value of our equity investment in Transgene was
approximately $34.1 million. Our investment in Transgene is subject to equity
market risk. In February 2000, we entered into an agreement with Cambridge
Antibody Technology to invest approximately $54.7 million in exchange for
1,670,000 ordinary shares of CAT. Because we were to make this investment in
pounds sterling, we entered into a forward contract in order to eliminate any
foreign currency risk associated with the purchase price. We closed this
transaction in April 2000. Our ongoing investment in CAT is denominated in
pounds sterling and is subject to both foreign currency risk as well as equity
market risk.
12
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PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
27.1 Financial data schedule.
---------------------------
(b) Reports on Form 8-K
We filed a Current Report on Form 8-K, on March 24,
2000, announcing the redemption of our $200 million aggregate
principal amount of 5% Convertible Subordinated Notes Due
2006.
We filed other Current Reports on Form 8-K on February
2, 2000, March 3, 2000, and March 13, 2000. Please refer to
our Annual Report on Form 10-K, filed March 17, 2000.
13
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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.
HUMAN GENOME SCIENCES, INC.
BY: /s/ William A. Haseltine, Ph.D.
---------------------------------------
William A. Haseltine, Ph.D.
Chairman & Chief Executive Officer
BY: /s/ Steven C. Mayer
---------------------------------------
Steven C. Mayer
Senior Vice President and
Chief Financial Officer
Dated: May 12, 2000
14
<PAGE> 15
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
Page Number
- -----------
<S> <C>
27.1 Financial data schedule.
</TABLE>
- ------------------------
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> MAR-31-2000
<CASH> 442,333
<SECURITIES> 461,011
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 909,237
<PP&E> 54,788
<DEPRECIATION> 27,424
<TOTAL-ASSETS> 1,020,413
<CURRENT-LIABILITIES> 17,852
<BONDS> 533,051
0
0
<COMMON> 545
<OTHER-SE> 451,152
<TOTAL-LIABILITY-AND-EQUITY> 1,020,413
<SALES> 0
<TOTAL-REVENUES> 642
<CGS> 0
<TOTAL-COSTS> 19,514
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,965
<INCOME-PRETAX> (68,898)
<INCOME-TAX> 0
<INCOME-CONTINUING> (68,898)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (68,898)
<EPS-BASIC> (1.34)
<EPS-DILUTED> (1.34)
</TABLE>
