<PAGE>
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 September 30, 1994
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 0-9032
SONESTA INTERNATIONAL HOTELS CORPORATION
(Exact name of registrant as specified in its charter)
NEW YORK 13-5648107
(State or other jurisdiction (I.R.S. Employer
of incorporation or organization) Identification No.)
200 Clarendon Street, Boston, MA 02116
(Address of principal executive offices)
(Zip Code)
617-421-5400
(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
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Sections 12, 13 or
15(d) of the Securities Exchange Act of 1934 subsequent to the
distribution of securities under a plan confirmed by a court.
Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS:
Number of Shares of Common Stock Outstanding
as of November 11, 1994 -- $.80 par value,
Class A -- 2,075,281
<PAGE>
FORM 10-Q
Part I - Item 1. Financial Information
<TABLE>
<CAPTION>
SONESTA INTERNATIONAL HOTELS CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30, 1994 (Unaudited) and December 31, 1993
(in thousands)
September 30 December 31
1994 1993
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 5,866 $ 6,919
Accounts and notes receivable:
Trade, less allowance of $87,381
($99,996 at 12/31/93) for doubtful accounts 4,645 4,438
Current portion of long-term receivables 160 123
Other 324 493
Total accounts and notes receivable 5,129 5,054
Inventories 572 697
Refundable income taxes 994 0
Prepaid expenses 409 401
Total current assets 12,970 13,071
Long-term receivables and advances 14,965 16,284
Investment in hotel and casino, at equity 1,541 0
Property and equipment, at cost:
Land 2,202 2,336
Buildings 53,471 53,788
Furniture and equipment 19,413 17,512
Leasehold improvements 542 482
75,628 74,118
Less accumulated depreciation and
amortization 46,912 43,686
Net property and equipment 28,716 30,432
$ 58,192 $ 59,787
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
FORM 10-Q
<TABLE>
<CAPTION>
SONESTA INTERNATIONAL HOTELS CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30, 1994 (Unaudited) and December 31, 1993
(in thousands)
September 30 December 31
1994 1993
<S> <C> <C>
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term debt and
capitalized lease obligations $ 934 $ 1,465
Accounts payable 3,836 5,124
Federal, foreign and state income taxes 948 1,181
Current portion-deferred taxes 1,276 1,934
Accrued liabilities:
Salaries and wages 1,401 1,739
Rentals 1,748 1,832
Interest 118 88
Taxes, other than income taxes 266 33
Employee benefits 1,088 292
Other 1,143 969
Total accrued liabilities 5,764 4,953
Total current liabilities 12,758 14,657
Long-term debt 20,288 18,848
Capitalized lease obligations 205 278
Deferred federal and state income taxes 2,663 3,700
Other non-current liabilities 75 317
Redeemable preferred stock, $25 par value, at
redemption value 294 294
Commitments and contingencies
Common stockholders' equity:
Common stock:
Class A, $.80 par value:
Authorized--10,000,000 shares
Issued--3,051,088 shares at stated value 3,488 3,488
Retained earnings 26,484 26,268
Treasury shares--975,807 at cost (8,063) (8,063)
Total common stockholders' equity 21,909 21,693
$ 58,192 $ 59,787
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
FORM 10-Q
<TABLE>
<CAPTION>
SONESTA INTERNATIONAL HOTELS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands except for per share data)
Three Months Ended Nine Months Ended
September 30 September 30
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Revenues:
Rooms $ 7,255 $ 6,439 $23,145 $20,665
Food and beverage 2,683 2,497 9,388 8,253
Management, license and
service fees 1,247 1,234 3,630 3,549
Other 1,025 1,055 3,206 3,195
12,210 11,225 39,369 35,662
Costs and expenses:
Costs and operating expenses 5,481 5,137 16,508 15,507
Advertising and promotion 1,229 1,130 3,535 3,400
Administrative and general 2,099 2,036 6,306 5,779
Human Resources 254 223 766 692
Maintenance 992 961 3,045 2,942
Rentals 569 316 2,588 1,873
Property taxes 321 288 920 815
Depreciation and amortization 1,093 1,186 3,284 3,580
12,038 11,277 36,952 34,588
Operating income (loss) 172 (52) 2,417 1,074
Other income (deductions):
Interest expense (483) (303) (1,115) (895)
Interest income 60 226 183 726
Foreign exchange gain (loss) (31) (13) (47) 6
Equity in net loss of hotel and
casino (322) -- (459) --
Gain (loss) on sales of assets 9 2 (96) 3,004
Other 118 79 118 79
(649) (9) (1,416) 2,920
Income (loss) before income
taxes (477) (61) 1,001 3,994
Federal, foreign and state income
tax provision (credit) (153) (23) 464 1,458
Net income (loss) (324) (38) 537 2,536
Retained earnings at beginning
of period 26,812 26,461 26,268 24,206
Cash dividends on preferred stock (4) (3) (10) (10)
Cash dividends on common stock -- -- (311) (312)
Retained earnings at end of period 26,484 26,420 26,484 26,420
Earnings per share of common stock:
Net income (loss) $ (.16) $ (.02) $ .26 $ 1.22
Weighted average number of shares
outstanding 2,075 2,083 2,075 2,083
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
FORM 10-Q
<TABLE>
<CAPTION>
SONESTA INTERNATIONAL HOTELS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Increase (Decrease) in Cash
(in thousands)
Nine Months Ended September 30
1994 1993
<S> <C> <C>
Cash provided by operating activities
Net income $ 537 $ 2,536
Items not (providing) requiring cash
Foreign exchange loss (gain) 47 (6)
Pension expense 399 107
Depreciation and amortization 3,284 3,580
Deferred federal income taxes (1,695) 141
Net loss (gain) on sales of assets 96 (3,004)
Provision for doubtful accounts (23) 22
Equity in net loss of hotel and casino 459 --
Changes in assets and liabilities
Accounts and notes receivable (75) (3,037)
Refundable income taxes (994) --
Inventories 125 130
Prepaid expenses (8) 36
Accounts payable (1,345) 555
Federal, foreign and state income taxes (233) 95
Accrued liabilities 178 (1,136)
Cash provided by operating activities 752 19
Cash provided (used) by investing activities
Proceeds from sales of assets 350 10
Expenditures for property and equipment (2,006) (2,267)
New loans and advances (571) (2,911)
Investment in hotel and casino (2,000) --
Payments received on long-term receivables
and advances 1,936 1,546
Cash used by investing activities (2,291) (3,622)
Cash provided (used) by financing activities
Proceeds from issuance of long term debt 2,000 --
Payments on long-term debt (434) (224)
Payments on capitalized lease obligations (730) (688)
Purchase of common stock -- (5)
Cash dividends paid (321) (322)
Cash provided (used) by financing
activities 515 (1,239)
Gain (loss) from effect of exchange rate
changes on cash (29) 3
Net decrease in cash (1,053) (4,839)
Cash and cash equivalents at beginning of period 6,919 11,194
Cash and cash equivalents at end of period $ 5,866 $ 6,355
<FN>
Supplemental Schedule of non-cash investing activity.
In March 1993 the Company realized an additional net gain and recorded
a receivable of $3,000,000 from a sale of Aruban assets (See Note 1-
Operations).
(continued on next page)
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (continued)
Supplemental Schedule of Interest and Income Taxes Paid
Cash paid for interest in the 1994 nine-month period and the 1993
nine-month period was approximately $1,085,000 and $899,000, respec-
tively. Cash paid for income taxes in the 1994 and 1993 nine-month
periods was approximately $3,288,000 and $1,223,000, respectively.
See accompanying notes to consolidated financial statements.
</TABLE>
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Operations
The accompanying unaudited consolidated financial statements include
the accounts of the Company and all foreign and domestic subsidiaries.
In the opinion of management, these financial statements reflect all
adjustments consisting of normal recurring items necessary to present
fairly the financial position of the Company at September 30, 1994 and
December 31, 1993, and the results of operations for the nine month
periods ended September 30, 1994 and 1993 and the statement of cash
flow for the nine-month periods ended September 30, 1994 and 1993, and
should be read in conjunction with the 1993 Annual Report.
The results of operations for these periods are not necessarily
indicative of the results for the full years.
The Sonesta Beach Hotel and Casino, in Curacao, which opened in
November of 1992, is operated by the Company under a management
agreement. Pursuant to the terms of the management agreement, the
Company in May 1994 invested $2,000,000 in the hotel and casino for a
22% equity ownership. The Company uses the equity method of account-
ing for this investment, under which method the original investment is
recorded at cost and is adjusted by the Company's share of undistrib-
uted earnings or losses of the hotel and casino. The Company entered
into a $2,000,000 loan agreement to finance this investment (See Note
4).
During 1993 and 1994, the Company has loaned approximately $5,473,000
to the owner of the Sonesta Beach Resort in Key Biscayne, Florida,
which the Company operates under a long-term management agreement (See
Note 2 -- Long Term Receivables). In addition, the Company advanced
$1,235,000 for furniture, fixtures and equipment purchases for the
hotel, which was repaid in September 1994 out of insurance proceeds.
During the first quarter of 1993, the Company had a pre-tax $3,000,000
gain on sale, which resulted from the recognition of previously
deferred income following the sale in 1992 of its Aruban assets.
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Sonesta Resort, Sharm el Sheikh, Egypt opened in May, 1994. The
Company has loaned $800,000 to the owner of the Resort (See Note 2 --
Long Term Receivables). The Company operates the hotel under a long-
term management agreement, under which it receives management and
incentive fees.
2. Long-Term Receivables and Advances
<TABLE>
<CAPTION>
(in thousands)
September 30 December 31
1994 1993
<S> <C> <C>
From sales of assets:
The Sonesta Beach Hotel, Key Biscayne,
Florida (a):
Second mortgage receivable, 14-1/2% interest
(of which 11% is payable quarterly and
3-1/2% deferred until maturity) due
12/31/97 $ 5,000 $ 5,000
Deferred interest receivable 2,306 2,306
$6,500,000 fourth mortgage receivable,
10% simple interest due 12/31/04,
net of $5,500,000 reserve 1,000 1,000
The Crystal Casino, Aruba (b) 195 1,926
Sharm El Sheikh (c) 800 600
Sonesta Beach Hotel, Key Biscayne (d) 2,584 2,684
Sonesta Beach Hotel, Key Biscayne (e) 2,789 2,501
Other 451 390
Total long-term receivables $15,125 $16,407
Less: current portion 160 123
Net long-term receivables $14,965 $16,284
<FN>
(a) The Company's mortgage notes receivable are subordinate to a
first mortgage of $23,339,000. The maturity date of the first
mortgage loan is October 1, 2000. Based on the Company's analy-
sis of the present situation in the hotel industry and generally
depressed hotel real estate values, it has stopped, effective
July 1, 1992, recording as income the deferred portion of inter-
est on the second mortgage, and, effective January 1, 1994, the
current portion of interest on the second mortgage.
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(b) As a result of the sale by the Company in January 1992 of
its interest in the Crystal Casino Aruba, the Company has record-
ed a receivable in the original amount of $5,110,000. This
receivable earns interest at prime. Principal and interest is
payable monthly based on a percentage of the Crystal Casino win
in excess of $10,000,000 per annum. The $10,000,000 is subject
to increase based on capital improvements made by the casino
owner. As of September 30, 1994, $4,915,000 of principal pay-
ments have been received, reducing the balance to $195,000.
(c) A subsidiary of the Company has loaned $800,000 to the owner
of the Sonesta Beach Resort, Sharm El Sheikh which opened in May,
1994. This receivable earns interest at an annual rate of ten
percent. Principal and interest is payable in 18 monthly in-
stallments out of hotel cash flow following the opening of the
hotel.
(d) A subsidiary of the Company has loaned $2,684,000 to the
hotel's owner, to enable the owner to meet its obligations,
including those incurred to reconstruct and reopen the hotel in
1993 (see also Note 1 -- Operations). Of this loan, $550,000
accrues interest at a rate of 14 1/2%, while the balance accrues
interest at the prime rate. Principal and interest are payable,
beginning in 1994, out of hotel cash flow after payment of first
and second mortgage interest and a payment to owner equal to 3/4
of 1% of revenues of the hotel. Of this loan, an amount of
$550,000 and interest thereon is secured by the Company's second
mortgage, while the remaining amount is secured by a third
mortgage on the hotel property.
(e) Under three separate agreements, a subsidiary of the Company
has loaned $2,789,000 to the owner of the hotel to finance im-
provements to the hotel property and certain furniture, fixtures
and equipment. These loans earn interest at rates ranging from
prime plus two percentage points to 10%. The principal and
interest is payable, beginning in 1994, out of hotel cash flow
available after payment of first and second mortgage interest.
</TABLE>
3. Borrowing Arrangements
The Company has a $2,000,000 line of credit which expires on September
30, 1995. This line of credit bears interest at the prime rate. The
terms of the line require a certain minimum net worth, a minimum
amount of unrestricted cash or available credit lines during part of
each calendar year, and approval for additional borrowings by the
Company. No amount was outstanding under this line at September 30,
1994.
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A subsidiary of the Company has a $3,500,000 line of credit which
bears interest at 3/4% above prime, and will expire December 31, 1994.
The Company is required to pay a commitment fee of one-half percent
per annum on the amount available but unused under the facility. The
terms of the loan require certain minimum levels of earnings and net
worth, limit cash dividends and purchases of the Company's stock and
specify a maximum defined debt to net worth ratio. The loan is
secured by the Company's leasehold interest in the Royal Sonesta
Hotel, New Orleans. No amount was outstanding under this line at
September 30, 1994. The Company has signed agreements to extend this
line for a period of three years as of January 1, 1995. The amount of
this line will increase to $5,000,000.
4. Long-Term Debt
<TABLE>
<CAPTION>
(in thousands)
September 30 December 31
1994 1993
<S> <C> <C>
Charterhouse of Cambridge Trust:
First mortgage notes (a) $18,937 $19,371
Sonesta Curacao Hotel Corporation, N.V.:
Bank term loan (b) 2,000 0
Other 188 188
Total long term debt 21,125 19,559
Less current portion 837 711
Net long-term debt $20,288 $18,848
<FN>
(a) The loan is secured by a first mortgage and first lien security
interest on the Royal Sonesta Hotel, Cambridge property. In
addition, the stock of Sonesta of Massachusetts, Inc. and the
shares of Charterhouse of Cambridge Trust have been pledged as
security for the mortgage loan along with an unconditional
assignment of the lease. The loan was extended for an addi-
tional five years as of April, 1992. The loan requires monthly
principal payments of $24,834 until April, 1994 and $66,777 for
the remaining three years as of May, 1994. Interest on the loan
was at 5% until April 16, 1994, and is two percentage points over
the LIBOR rate for the remaining three years of the extension
term. The interest rate at September 30, 1994 was 6.875%.
(b) This loan is for a three year period ending April 30, 1997. No
principal payments are required during the term. The interest
rate increased from 9% to 9.75% on November 1, 1994, and is
subject to periodic review by the bank. This loan may be prepaid
on 60 days notice. The loan is secured by a Company guaranty,
and by an assignment of the right to receive fees under the
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
management agreement for the Sonesta Beach Hotel and Casino, Curacao.
</TABLE>
5. Hotel Costs and Operating Expenses
Hotel costs and operating expenses in the accompanying Consoli-
dated Statement of Operations are summarized below:
<TABLE>
<CAPTION>
(in thousands)
Three Months Ended Nine Months Ended
September 30 September 30
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Direct Departmental Costs
Rooms $2,010 $1,865 $ 5,783 $ 5,439
Food and Beverage 2,348 2,170 7,401 6,863
Other 655 627 1,953 1,851
5,013 4,662 15,137 14,153
Heat, light and power 468 475 1,371 1,354
$5,481 $5,137 $16,508 $15,507
<FN>
Direct departmental costs include payroll expense and related
payroll burden, the cost of food and beverage consumed and other
departmental costs.
</TABLE>
6. Federal, Foreign and State Income Tax
The provision (benefit) for income taxes in the accompanying
Consolidated Statement of Operations is summarized below:
<TABLE>
<CAPTION>
(in thousands)
Nine Months Ended
September 30 September 30
1994 1993
<S> <C> <C>
Deferred United States income
tax (credit) $(1,695) $ 141
Current United States income tax 1,919 1,155
Current foreign income tax 30 71
Current state income tax 210 91
$ 464 $1,458
</TABLE>
<PAGE>
FORM 10-Q
Part I - Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
FIRST NINE MONTHS OF 1994 COMPARED TO 1993
REVENUES
Total revenues for the first nine month period ended September
30, 1994 were $39,369,000 compared to $35,662,000 in 1993, an in-
crease of approximately $3,700,000.
The Company's New Orleans hotel had an increase in revenues of
approximately $2,700,000 due principally to a 4.8% increase in
average room rate, a 7.8% increase in occupancy levels, and
increased food and beverage revenues. The Company's Boston
(Cambridge) hotel had increased revenues in 1994 of approximately
$1,030,000 due principally to a 5.8% increase in average room
rate and increased food and beverage revenues. Revenues from
other sources decreased by $30,000.
OPERATING INCOME
Operating income for the nine-month period ended September 30,
1994 was $2,417,000 compared to operating income of $1,074,000 in
1993, an increase of approximately $1,340,000. The Company's New
Orleans Hotel showed a $1,270,000 increase in operating income
and the Boston (Cambridge) Hotel operations showed a $220,000 in-
crease in operating income compared to the 1993 period. The
remaining net decrease of $150,000 is primarily a result of
increases in management costs and expenses only partially offset
by increases in fee income.
OTHER INCOME (DEDUCTIONS)
The 1993 period includes a pre-tax gain of $3,000,000 from the
sale of Aruban assets (See Note 1--Operations).
The 1994 period includes $459,000 equity in net loss of hotel and
casino representing the Company's 22% share in the net loss of
the Sonesta Beach Hotel and Casino in Curacao (See Note 1--
Operations).
Interest expense increased by $220,000 compared to 1993, due to
an increase in the interest rate of the Company's remaining
mortgage and the additional borrowing of a $2,000,000 bank term
loan (See Note 4).
<PAGE>
FORM 10-Q
Interest income decreased by $543,000 in the 1994 period. The
1993 period includes interest of $412,000 from the Company's
second mortgage receivable in Key Biscayne. The Company decided
to stop recording as income this interest effective January 1,
1994 (See Note 2--Long Term Receivables and Advances). The
remaining decrease in interest income of $131,000 is principally
due to lower short-term investment interest income from the
Company's decreased cash balances and decreased principal balance
on the Aruba casino note (See Note 2-Long Term Receivables and
Advances).
THIRD QUARTER 1994 COMPARED TO 1993
REVENUES
Total revenues for the third quarter ended September 30, 1994
were $12,210,000 compared to $11,225,000 in 1993, an increase of
approximately $980,000. The New Orleans hotel had an increase in
revenues of approximately $800,000 due principally to a 9.6%
increase in occupancy levels, a 2.8% increase in average room
rate, and increased food and beverage revenues. The Company's
Boston (Cambridge) hotel increased revenues in 1994 by approxi-
mately $220,000 due principally to a 4.7% increase in average
room rate and a 1.7% increase in occupancy levels. Remaining
revenues decreased by $40,000.
OPERATING INCOME
Operating income for the three-month period ended September 30,
1994 was $172,000 compared to an operating loss of $52,000 in
1993, an increase of approximately $220,000. The Company's New
Orleans hotel operations showed a $290,000 increase in operating
income, while the Boston (Cambridge) hotel showed a $10,000
decrease in operating income in the 1994 period compared to the
1993 period. The remaining net decrease of $60,000 is primarily
a result of increases in management costs and expenses and a
decrease in other revenue.
LIQUIDITY AND CAPITAL RESOURCES
At September 30, 1994 the Company has a positive working capital
balance of approximately $212,000.
The Company believes that its available credit lines and the
expected cash flow generated during the remainder of the calendar
year 1994, will be more than adequate to meet all of its obliga-
tions.
<PAGE>
FORM 10-Q
PART II - Other Information
Item Numbers 1, 2, 3, 4, 5, and 6
Not applicable during the quarter ended September 30, 1994.
<PAGE>
FORM 10-Q
SIGNATURE
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.
SONESTA INTERNATIONAL HOTELS CORPORATION
By: /s/ Boy van Riel
--------------------
Boy van Riel
Vice President and Treasurer
(Authorized to sign on behalf of the
Registrant as Principal Financial Officer)
DATE: November 11, 1994
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-30-1994
<PERIOD-END> SEP-30-1994
<CASH> 5,886
<SECURITIES> 0
<RECEIVABLES> 4,732
<ALLOWANCES> 87
<INVENTORY> 572
<CURRENT-ASSETS> 12,970
<PP&E> 75,628
<DEPRECIATION> 46,912
<TOTAL-ASSETS> 58,192
<CURRENT-LIABILITIES> 12,758
<BONDS> 20,288
<COMMON> 3,488
0
294
<OTHER-SE> 18,421
<TOTAL-LIABILITY-AND-EQUITY> 58,192
<SALES> 9,388
<TOTAL-REVENUES> 39,369
<CGS> 2,188
<TOTAL-COSTS> 16,508
<OTHER-EXPENSES> 20,444
<LOSS-PROVISION> (23)
<INTEREST-EXPENSE> 1,115
<INCOME-PRETAX> 1,001
<INCOME-TAX> 464
<INCOME-CONTINUING> 537
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 537
<EPS-PRIMARY> .26
<EPS-DILUTED> .26
</TABLE>
