FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the Quarterly period ended March 31, 1996
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 Section 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 ISSURERS:
Number of Shares of Common Stock Outstanding
as of May 10, 1996 -- $.80 par value,
Class A -- 2,071,215
<PAGE>
FORM 10-Q
Part I - Item 1. Financial Information
SONESTA INTERNATIONAL HOTELS CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31, 1996 (Unaudited) and December 31, 1995
<TABLE>
<CAPTION>
(in thousands)
----------------------------------
March 31 December 31
1996 1995
--------- -----------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 1,328 $ 3,370
Accounts and notes receivables:
Trade, less allowance of $89,000
($98,000 at December 31, 1995) for
doubtful accounts 4,796 5,098
Interest Receivable 143 145
Other 795 828
------- ------
Total accounts and notes receivable 5,734 6,071
Current portion of deferred taxes 381 400
Inventories 761 656
Prepaid expenses 1,410 496
------- ------
Total current assets 9,614 10,993
Long-term receivables and advances 13,074 13,544
Investments in hotels 6,416 6,341
Property and equipment, at cost:
Land 2,206 2,202
Buildings 39,660 39,611
Furniture and equipment 15,992 15,096
Leasehold improvements 703 700
------ ------
58,561 57,609
Less accumulated depreciation and
amortization 20,247 19,247
------ ------
Net property and equipment 38,314 38,362
------ ------
$67,418 $69,240
====== ======
</TABLE>
See accompanying notes to consolidated financial statements.
1
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31, 1996 (Unaudited) and December 31, 1995
<TABLE>
<CAPTION>
(in thousands)
----------------------------------
March 31 December 31
1996 1995
--------- -----------
<S> <C> <C>
LIABILITIES AND COMMON STOCKHOLDERS' EQUITY
Current liabilities:
Notes payable $ 289 $ 562
Current portion of long-term debt and
capitalized lease obligations 1,247 1,211
Accounts payable 3,733 5,380
Federal, foreign and state income taxes 392 411
Accrued liabilities:
Salaries and wages 959 1,782
Rentals 6,771 5,270
Interest 144 173
Employee benefits 939 982
Other 1,401 1,056
------ ------
Total accrued liabilities 10,214 9,263
------ ------
Total current liabilities 15,875 16,827
Long-term debt 24,577 24,977
Capital lease obligations 92 105
Deferred federal and state income taxes 2,401 2,381
Other non-current liabilities 1,186 1,030
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 27,602 28,235
Treasury shares--979,851, at cost (8,097) (8,097)
------ ------
Total common stockholders' equity 22,993 23,626
------ ------
$67,418 $69,240
====== ======
</TABLE>
See accompanying notes to consolidated financial statements.
2
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(in thousands except for per share data)
<TABLE>
<CAPTION>
Three months ended
-------------------------------------
March 31, 1996 March 31, 1995
-------------- --------------
<S> <C> <C>
Revenues:
Rooms $ 8,330 $ 8,136
Food and beverage 3,247 3,132
Management, license and
service fees 1,428 1,230
Other 1,177 1,005
------- -------
14,182 13,503
------- -------
Costs and expenses:
Costs and operating expenses 6,176 5,437
Advertising and promotion 1,383 1,172
Administrative and general 2,690 2,265
Human resources 327 301
Maintenance 1,170 1,021
Rentals 1,709 2,198
Property taxes 270 304
Depreciation and amortization 1,000 828
------- -------
14,725 13,526
------- -------
Operating loss (543) (23)
Other income (deductions):
Interest expense (498) (447)
Interest income 298 377
Foreign exchange gain (loss) (1) 13
Equity in net profit (loss) of hotel and
casino (16) 28
Gain on sales of assets 183 545
------- -------
(34) 516
Income (loss) before income taxes (577) 493
Federal, foreign and state income tax provision 53 159
------- -------
Net income (loss) (630) 334
Retained earnings at beginning of period 28,235 26,095
Cash dividends on preferred stock (3) (3)
------- -------
Retained earnings at end of period $27,602 $26,426
======== ========
Earnings per share of common stock:
Net income (loss) $ (.31) $ .16
------- -------
Weighted average number of shares
outstanding 2,071 2,075
======== ========
</TABLE>
See accompanying notes to consolidated financial statements.
3
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Increase (Decrease) in Cash
<TABLE>
<CAPTION>
(in thousands)
----------------------------------
Three Months Ended March 31
1996 1995
--------- -----------
<S> <C> <C>
Cash provided (used) by operating activities
Net income (loss) $ (630) $ 334
Items not (providing) requiring cash
Foreign exchange loss (gain) 1 (13)
Pension expense 151 143
Depreciation and amortization 1,000 828
Deferred federal income tax provision (benefit) 39 (507)
Gain on sales of assets (183) (545)
Provision for doubtful accounts 9 6
Equity in net (profit) loss of hotel and casino 16 (28)
Changes in assets and liabilities
Accounts and notes receivable 281 362
Refundable income taxes -- 959
Inventories (105) 70
Prepaid expenses (913) (400)
Accounts payable (1,336) (1,242)
Federal, foreign and state income taxes (19) 410
Accrued liabilities 1,131 (1,319)
------ ------
Cash used by operating activities (558) (942)
Cash provided (used) by investing activities
Proceeds from sales of assets 8 10
Expenditures for property and equipment (941) (352)
Investments in hotels (91) (106)
New loans and advances (89) --
Payments received on long-term receivables
and advances 594 325
------ ------
Cash used by investing activities (519) (123)
Cash provided (used) by financing activities
Changes in notes payable (273) 1,500
Payments on long-term debt (350) (201)
Payments on capitalized lease obligations (27) (24)
Cash dividends paid (314) (315)
------ ------
Cash provided (used) by financing activities (964) 960
Gain (loss) from effect of exchange rate
changes on cash (1) 6
------ ------
Net decrease in cash (2,042) (99)
Cash and cash equivalents at beginning of period 3,370 3,669
------ ------
Cash and cash equivalents at end of period $ 1,328 $ 3,570
======= =======
</TABLE>
4
<PAGE>
FORM 10-Q
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (continued)
Supplemental Schedule of Interest and Income Taxes Paid
Cash paid for interest in the 1996 three-month period and the 1995
three-month period was approximately $527,000 and $441,000, respectively.
Cash paid for income taxes in the 1996 three-month period was 33,000.
Net cash refunded for income taxes in the 1995 three-month period was
$703,000.
See accompanying notes to consolidated financial statements.
5
<PAGE>
FORM 10-Q
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 normally recurring items necessary to present fairly the financial
position of the Company at March 31, 1996 and the results of its operations for
the three month periods ended March 31, 1996 and 1995 and its cash flows for the
three month periods ended March 31, 1996 and 1995, and should be read in
conjunction with the 1995 Annual Report.
The results of operations for these periods are not necessarily indicative of
the results for the full years.
In the first quarter of 1996, the Company adopted Statement No. 121, Accounting
for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed
Of. This Statement was issued by the FASB in March 1995. The Statement requires
impairment losses to be recorded on long-lived assets used in operations when
indicators of impairment are present and the undiscounted cash flows estimated
to be generated by those assets are less than the assets' carrying amounts.
Statement 121 also addresses the accounting for long-lived assets that are
expected to be disposed of. The adoption of Statement 121 had no effect on the
Company's consolidated balance sheet at March 31,1996, and the result of
operations for the three month period ended March 31, 1996.
On November 28, 1995, a wholly-owned subsidiary of the Company purchased the
Casablanca Resort in Anguilla, British West Indies. The Seller restored all
damage done to the 100-room hotel property by Hurricane Luis in September 1995,
and the hotel reopened as Sonesta Beach Resort Anguilla in January 1996. As part
of the transaction, the Company is entitled to a credit on the purchase price
for certain expenses related to the hotel property and operations until March 1,
1996. Included in Accounts receivable-other is an amount of $400,000 at March
31, 1996, for this credit. During the first quarter of 1996, the Company
received an assignment of certain expected insurance proceeds from the Seller to
satisfy this receivable. In case the insurance proceeds prove insufficient, the
Company has the right to deduct any remaining amounts from a loan from the
Seller which is due in November 1998 (see Note 4, Long-Term Debt).
Included in accrued rentals at March 31, 1996, is percentage rent of $5,269,000
for the year ended December 31, 1995, related to the Royal Sonesta Hotel in New
Orleans, which is operated by the Company under a long-term lease. This amount
was paid in April 1996.
6
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Long-Term Receivables and Advances
(in thousands)
----------------------------------
March 31, December 31,
1996 1995
-------------- ------------
The Sonesta Beach Resort,
Key Biscayne, Florida:
Second mortgage receivable,
14-1/2% interest (of which
11% is payable quarterly
and 3-1/2% deferred until
maturity) due 12/31/97 (a) $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 (a) 1,000 1,000
Loans to owner (b) 3,995 4,472
Sharm el Sheikh (c) 290 370
Other 496 408
-------------- -----------
Total long-term $13,087 $13,556
receivables
Less: current portion 13 12
-------------- -----------
Net long-term receivables $13,074 $13,544
============== ===========
(a) The Company's mortgage notes receivable are subordinate to a first
mortgage of $23,333,000 at March 31, 1996. The maturity date of the first
mortgage loan is October 1, 2000. The Company has not recorded as income
the deferred portion of interest on the second mortgage since July 1,
1992.
7
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(b) Under five separate agreements, a subsidiary of the Company loaned
$5,475,000 to the hotel's owner during 1993 and 1994. These loans earn
interest at rates ranging from the prime rate to 14 1/2%. Of these
loans, an amount of $2,684,000, and interest thereon is secured by
mortgages on the hotel property. Principal and interest are payable
out of hotel cash flow remaining after payment of first and second
mortgage interest, and a payment to the hotel's owner equal to 3/4 of
1% of revenues of the hotel.
(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 are payable in 18 monthly installments out of hotel cash flow
following the opening of the hotel. During 1995 and 1996 the company
received payments of $510,000, reducing the principal balance to $290,000
at March 31, 1996.
In connection with its Key Biscayne notes receivable, the Company recorded
interest income of $275,000 during the first quarter of 1996. During the same
period, cash payments received were $752,000.
3. Borrowing Arrangements
The Company has a $2,000,000 line of credit which expires on September 30, 1996.
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 March 31, 1996.
A subsidiary of the Company has a $5,000,000 line of credit which will expire
December 31, 1997. 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, and by a Company guaranty. The interest rate is prime less one-eighth
percent, and the commitment fee on the unused portion of the line is .65% per
annum. No amount was outstanding under this line at March 31, 1996.
8
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A foreign subsidiary has an operating line of credit of $500,000, which is
guaranteed by the Company. The interest rate is at the prime rate plus one
percentage point. This line of credit is subject to periodic review by the bank.
The balance outstanding under this line at March 31, 1996 was $288,920.
4. Long-Term Debt
(in thousands)
-------------------------------------
March 31, December 31,
1996 1995
-------------- -------------
Charterhouse of Cambridge Trust:
First mortgage notes (a) $17,735 $17,936
Sonesta Hotels of Anguilla, Ltd:
First mortgage notes (b) 4,840 4,990
Note from Seller (c) 1,000 1,000
Sonesta Curacao Hotel Corporation, N.V.:
Bank term loan (d) 2,000 2,000
Other 249 188
-------------- -------------
25,824 26,114
Less current portion of long-term debt 1,247 1,137
-------------- -------------
Total long-term debt $24,577 $24,977
============== =============
(a) The loan is secured by a first mortgage and first lien security
interest on the Royal Sonesta Hotel Boston (Cambridge) property. This
property is included in fixed assets at a net book value of approximately
$18,600,000 at March 31,1996. 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 requires monthly principal payments of
$66,777, and the remaining balance is due at maturity in April 1997.
Interest on the loan is two percentage points over the LIBOR rate. The
interest rate at March 31, 1996 was 7 5/16%.
(b) The loan is secured by a first mortgage on the Sonesta Beach Resort
Anguilla property, and an assignment to the Lender of the hotel's
furniture, fixtures and equipment. The property is included in fixed
assets at a net book value of $8,870,000 at March 31, 1996. In addition,
an amount of $1,000,000 is secured by a Company guaranty. The loan
requires minimum principal payments of $300,000 in 1996, $425,000 in 1997
and $550,000 in each of the years 1998 and 1999. In addition, principal
payments are required equal to 25% of the hotel's annual excess cash flow,
as defined. The balance is due on March 1, 2000. The interest rate on the
loan is LIBOR plus 2 1/4 percentage points. The interest rate at March 31,
1996 was 7 3/4%.
9
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(c) This loan from the Seller of the Sonesta Beach Resort Anguilla is for a
three year period ending November 28, 1998. The interest rate is 8% per
annum. No principal payments are due during the term of the loan. The
Company has the right to offset certain receivables from the Seller from
this loan (see Note 1 -- Operations).
(d) This loan is for a three year period ending April 30, 1997. No principal
payments are required during the term. The interest rate was 9.75% at
March 31, 1996, 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
management agreement for the Sonesta Beach Hotel & Casino, Curacao.
5. Hotel Costs and Operating Expenses
Hotel costs and operating expenses in the accompanying Consolidated Statements
of Operations are summarized below:
(in thousands)
-----------------------------
Three Months Ended March 31
1996 1995
------------- ---------------
Direct departmental costs
Rooms $ 2,114 $1,934
Food and beverage 2,844 2,532
Other 662 587
------ -------
5,620 5,053
Heat, light and power 556 384
----- ------
$6,176 $5,437
====== ======
Direct departmental costs include payroll expenses and related payroll burden,
the cost of food and beverage consumed and other departmental costs.
10
<PAGE>
FORM 10-Q
SONESTA INTERNATIONAL HOTELS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
6. Federal, Foreign and State Income Tax
The provision for income taxes in the accompanying Consolidated Statements of
Operations is summarized below:
(in thousands)
-----------------------------
Three Months Ended March 31
1996 1995
------------- ---------------
Deferred United States income provision (benefit) $ 39 $ (507)
Current United States income tax benefit (52) (570)
Current foreign income tax 15 1,201
Current state income tax 51 35
------- -------
$ 53 $ 159
======= =======
11
<PAGE>
FORM 10-Q
Part I - Item 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION
FIRST QUARTER 1996 COMPARED TO 1995
REVENUES
Total revenues for the first quarter ended March 31, 1996 were $14,182,000
compared to $13,503,000 in 1995, an increase of approximately $679,000.
The Company's Boston (Cambridge) hotel had increased revenues in the 1996
quarter of approximately $414,000, primarily because of an 11% increase in
average room rates. The Company's New Orleans hotel experienced a decrease in
revenues of approximately $557,000 in the first quarter of 1996 compared to the
same period in 1995, which was primarily due to a 10% decrease in occupancy
levels. The Company's Sonesta Beach Resort Anguilla, which opened January 18th
1996, had revenues in the first quarter of $585,000. The remaining revenue
increase of $237,000 was primarily from increases in management and service fee
income.
OPERATING INCOME
Operating loss for the three-month period ended March 31, 1996 was $543,000
compared to operating loss of $23,000 in 1995, an increase of approximately
$520,000.
The Company's Anguilla Resort had an operating loss of $543,000 from the opening
on January 18, 1996 until March 31, 1996. The Boston (Cambridge) hotel had a
decrease in its first quarter operating loss of $236,000, primarily because of
increased revenues of $414,000, partially offset by increased expenses,
primarily cost and operating expenses, of $178,000. The New Orleans hotel's
operating income decreased by $175,000 in the first quarter of 1996 compared to
the same period last year. This decrease was caused by lower revenues of
$557,000, a slight increase in operating expenses of $83,000, partially offset
by a decrease in percentage rent expense of $465,000. The New Orleans hotel is
operated by the Company under a long-term lease under which it pays percentage
rent based on net income, as defined. Operating loss from management activities
and other sources increased by $38,000 in the first quarter of 1996, because of
increased expenses of $275,000, which exceeded the increase in revenues of
$237,000 from these activities.
OTHER INCOME (DEDUCTIONS)
Interest expense increased by $51,000 primarily due to interest on the
additional indebtedness related to the Sonesta Beach Resort Anguilla, which the
Company purchased in November 1995.
Interest income in the first quarter of 1995 included interest received on a
federal income tax refund during that quarter. This income exceeded increased
interest income in the 1996 quarter of approximately $137,000 on the Company's
Key Biscayne receivables, resulting in a net decrease of $79,000.
The 1995 period includes a pre-tax gain of approximately $535,000 related to the
sale of its Amsterdam Sonesta Hotel in 1991.
12
<PAGE>
FORM 10-Q
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL
CONDITION (CONTINUED)
LIQUIDITY AND CAPITAL RESOURCES
At March 31, 1996 the Company has a negative working capital balance of
approximately $6,261,000, due principally to the accrual of percentage rent due
under the lease for the Royal Sonesta Hotel in New Orleans. The rent due for the
year 1995 of $5,269,000 was paid on April 1, 1996, as per the terms of the
lease. The rent was paid from the Company's cash balances and borrowings under
its lines of credit.
The Company's investment in a hotel project in New York at March 31, 1996 was
$5,163,000. The Company has decided not to proceed with the development of the
hotel. The Company expects to be repaid its investment in 1996.
The Company believes that its present cash balances plus its available borrowing
capacity and the expected cash flow generated during the remainder of the
calendar year 1996 will be adequate to meet all of its obligations.
FEDERAL, FOREIGN AND STATE INCOME TAXES
The provision for income taxes for the first quarter 1996 is higher than the
statutory rate due to losses from the Company's foreign subsidiary which
operates the Sonesta Beach Resort Anguilla, B.W.I., which are not deductible for
U. S. income taxes.
PART II - Other Information
Item Numbers 1, 2, 3, 4, 5 and 6
Not applicable during the quarter ended March 31, 1996.
13
<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:
-----------------------------------
Boy van Riel
Vice President and Treasurer
(Authorized to sign on behalf of the Registrant as Principal
Financial Officer)
DATE: May 13, 1996
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 1,328
<SECURITIES> 0
<RECEIVABLES> 4,885
<ALLOWANCES> 89
<INVENTORY> 761
<CURRENT-ASSETS> 9,614
<PP&E> 58,561
<DEPRECIATION> 20,247
<TOTAL-ASSETS> 67,418
<CURRENT-LIABILITIES> 15,875
<BONDS> 24,577
0
294
<COMMON> 3,488
<OTHER-SE> 19,505
<TOTAL-LIABILITY-AND-EQUITY> 67,418
<SALES> 3,247
<TOTAL-REVENUES> 14,182
<CGS> 829
<TOTAL-COSTS> 6,176
<OTHER-EXPENSES> 8,549
<LOSS-PROVISION> 9
<INTEREST-EXPENSE> 498
<INCOME-PRETAX> (577)
<INCOME-TAX> 53
<INCOME-CONTINUING> (630)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (630)
<EPS-PRIMARY> (.31)
<EPS-DILUTED> (.31)
</TABLE>
