UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended March 31, 1997
Commission file number 1-4416
SPS TECHNOLOGIES, INC.
(Exact name of Registrant as specified in its Charter)
PENNSYLVANIA 23-1116110
(State of incorporation) (I.R.S. Employer
101 Greenwood Avenue, Suite 470 Identification No.)
Jenkintown, Pennsylvania 19046
(Address of principal executive offices) (Zip Code)
(215) 517-2000
(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. Yes X . No .
The number of shares of Registrant's Common Stock
outstanding on May 6, 1997 was 6,030,171.
<PAGE>1
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
PART 1
FINANCIAL INFORMATION
Item 1. Index to Financial Statements
Condensed Statements of Consolidated Operations -
Three Months Ended March 31, 1997 and 1996
(Unaudited)
Condensed Consolidated Balance Sheets -
March 31, 1997 and December 31, 1996
(Unaudited)
Condensed Statements of Consolidated Cash Flows -
Three Months Ended March 31, 1997 and 1996
(Unaudited)
Notes to Condensed Consolidated Financial Statements
<PAGE 2>
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED OPERATIONS
(Unaudited-Thousands of dollars except share data)
Three Months Ended
March 31,
------------------------
1997 1996
---------- ----------
Net sales $ 137,975 $ 113,975
Cost of goods sold 108,645 91,150
---------- ----------
Gross profit 29,330 22,825
Selling, general and
administrative expense 16,552 14,065
---------- ----------
Operating earnings 12,778 8,760
Other income (expense):
Interest income 340 60
Interest expense (2,276) (1,590)
Equity in earnings
of affiliates 85 102
Other, net (207) (132)
---------- ----------
(2,058) (1,560)
---------- ----------
Earnings before income taxes 10,720 7,200
Provision for income taxes 3,600 2,160
---------- ----------
Net earnings $ 7,120 $ 5,040
========== ==========
Earnings per common share
and common share equivalent $ 1.12 $ .81
========== ==========
Weighted average number of
common shares used to compute
earnings per share 6,337,398 6,221,943
See accompanying notes to condensed consolidated financial statements.
<PAGE>3
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited-Thousands of dollars)
March 31, December 31,
1997 1996
---------- ----------
Assets
Current assets
Cash and cash equivalents $ 15,383 $ 33,310
Accounts and notes receivable,
less allowance for doubtful
receivables of $1,812 (1996-$1,668) 85,031 73,542
Inventories 101,092 99,778
Deferred income taxes 19,000 20,567
Prepaid expenses 3,360 2,979
Net assets held for sale 500 1,600
---------- ----------
Total current assets 224,366 231,776
---------- ----------
Investments in affiliates 4,715 4,760
Property, plant and equipment, net of
accumulated depreciation of $125,932
(1996-$127,446) 159,093 148,616
Other assets 53,354 42,848
---------- ----------
Total assets $ 441,528 $ 428,000
========== ==========
See accompanying notes to condensed consolidated financial statements.
<PAGE>4
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited-Thousands of dollars, except share data)
March 31, December 31,
1997 1996
---------- ----------
Liabilities and shareholders' equity
Current liabilities
Notes payable and current portion of
long-term debt $ 16,783 $ 16,454
Accounts payable 41,958 34,952
Accrued expenses 49,839 50,132
Income taxes payable 4,968 3,919
---------- ----------
Total current liabilities 113,548 105,457
---------- ----------
Deferred income taxes 15,260 14,505
Long-term debt 99,206 98,838
Retirement obligations 25,665 25,607
Minority interest 6,002 5,997
Shareholders' equity
Preferred stock, par value $1 per share,
authorized 400,000 shares, issued none
Common stock, par value $1 per share,
authorized 30,000,000 shares,
issued 6,673,452 shares (6,646,250
shares in 1996) 6,673 6,646
Additional paid-in capital 83,784 82,561
Retained earnings 108,011 100,891
Minimum pension liability (2,257) (2,257)
Common stock in treasury, at cost,
650,681 shares (645,381 shares in 1996) (8,253) (7,920)
Cumulative translation adjustments (6,111) (2,325)
---------- ----------
Total shareholders' equity 181,847 177,596
---------- ----------
Total liabilities and
shareholders' equity $ 441,528 $ 428,000
========== ==========
See accompanying notes to condensed consolidated financial statements.
<PAGE>5
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS
(Unaudited-Thousands of dollars)
Three Months Ended
March 31,
------------------------
1997 1996
---------- ----------
Net cash provided by (used in)
operating activities $ 13,012 $ (58)
---------- ----------
Cash flows provided by (used in)
investing activities
Additions to property, plant and equipment (12,860) (5,224)
Proceeds from sale of property, plant
and equipment 1,192 350
Acquisitions of businesses, net of cash
acquired (19,534) 690
---------- ----------
Net cash used in investing activities (31,202) (4,184)
---------- ----------
Cash flows provided by (used in) financing
activities
Proceeds from borrowings 3,219 14,605
Reduction of borrowings (2,993) (9,849)
Purchase of company stock (333)
Proceeds from exercise of stock options 633 1,354
---------- ----------
Net cash provided by financing activities 526 6,110
---------- ----------
Effect of exchange rate changes on cash (263) (32)
---------- ----------
Net increase (decrease) in cash
and cash equivalents (17,927) 1,836
Cash and cash equivalents at
beginning of period 33,310 8,093
---------- ----------
Cash and cash equivalents at
end of period $ 15,383 $ 9,929
---------- ----------
Significant noncash financing activity
Debt assumed with businesses acquired $ 900
Acquisition of treasury shares
for stock options exercised $ 3,066
See accompanying notes to condensed consolidated financial statements
<PAGE>6
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited-Thousands of dollars except share data)
1. Financial Statements
In the opinion of the Company's management, the
accompanying unaudited, condensed consolidated financial
statements contain all adjustments necessary to present
fairly the financial position as of March 31, 1997, the
results of operations for the three-month periods ended
March 31, 1997 and 1996, and cash flows for the three-month
periods ended March 31, 1997 and 1996. The December 31,
1996 condensed balance sheet data was derived from audited
financial statements, but does not include all disclosures
required by generally accepted accounting principles. The
accompanying financial statements contain only normal
recurring adjustments. All financial information has been
prepared in conformity with the accounting principles
reflected in the financial statements included in the 1996
Annual Report filed on Form 10-K applied on a consistent
basis.
2. Business Acquisitions
All acquisitions have been accounted for under the
purchase method. The results of operations of the
acquired businesses are included in the consolidated
financial statements from the dates of acquisition.
In January 1997, the Company acquired all of the
outstanding shares of Postkey, Ltd. (Postkey), a
manufacturer of cylindrical thread roll dies, located
in Nuneaton, England, for $1,200. The excess of
purchase price over the fair values of the net assets
acquired was approximately $860 and has been recorded
as goodwill, which is being amortized on a straight-
line basis over 30 years.
On February 24, 1997, the Company acquired all of
the outstanding shares of Greer Stop Nut, Inc. (Greer),
a manufacturer of nylon insert nuts, located in
Nashville, Tennessee for $10,000. The excess of the
purchase price over the fair values of the net assets
acquired was approximately $5,000 and has been recorded
as goodwill, which is being amortized on a straight-
line basis over 40 years.
<PAGE>7
On March 7, 1997, the Company acquired the assets
of RJF International Corporation's (RJF) Bonded Magnet
Business, a manufacturer of flexible ferrite bonded
magnets, located in Cincinnati and Marietta, Ohio for
$9,200. The excess of the purchase price over the fair
values of the net assets acquired was approximately
$4,800 and has been recorded as goodwill, which is
being amortized on a straight-line basis over 30 years.
In the first quarter of 1996, the Company formed a
joint venture in China by acquiring a 55 percent
interest in Shanghai SPS Biao Wu Fasteners Co. Ltd.
(SSBW). The Company contributed cash and equipment of
$3,288 and manufacturing technology.
In 1996, the Company completed two acquisitions of
magnet materials manufacturers. On June 14, 1996, the
Company acquired all of the outstanding shares of
Flexmag Industries, Inc. (Flexmag) located in Marietta,
Ohio, and the assets of a related magnets business
located in Seneca, South Carolina, for $21,274. On
July 3, 1996, the Company acquired all of the
outstanding shares of Swift Levick Magnets Ltd. (Swift
Levick), located in Derbyshire, England for $18,491.
The excess of the purchase price over the fair value of
the net assets acquired for both acquisitions was
approximately $12,900 and has been recorded as
goodwill, which is being amortized on a straight-line
basis over 30 years.
On October 8, 1996, the Company acquired 85
percent of the capital stock of Mecair Aerospace
Industries, Inc. (Mecair), a manufacturer of aerospace
fasteners, located in Pointe Claire (Montreal), Quebec,
Canada for $8,300. The excess of the purchase price
over the fair value of the net assets acquired was
approximately $3,500 and has been recorded as goodwill,
which is being amortized on a straight-line basis over
40 years.
The following unaudited pro forma consolidated
results of operations are presented as if the Greer,
RJF, Flexmag, Swift Levick and Mecair acquisitions had
been made at the beginning of the periods presented.
The effects of the other acquisitions (Postkey and
SSBW) are not material and, accordingly, have been
excluded from the pro forma presentation.
<PAGE>8
Three Months Ended
March 31,
------------------------
1997 1996
---------- ----------
Net sales $ 141,173 $ 131,515
Net earnings 7,157 5,511
Earnings per common share
and common share equivalent 1.13 .89
The pro forma consolidated results of operations
include adjustments to give effect to amortization of
goodwill, interest expense on acquisition debt and
certain other adjustments, together with related income
tax effects. The unaudited pro forma information is
not necessarily indicative of the results of operations
that would have occurred had the purchase been made at
the beginning of this period or the future results of
the combined operations.
3. Inventories
March 31, December 31,
1997 1996
---------- ----------
Finished goods $ 46,575 $ 50,726
Work-in-process 29,420 25,363
Raw materials
and supplies 18,561 17,010
Tools 6,536 6,679
---------- ----------
$ 101,092 $ 99,778
========== ==========
The March 31, 1997 inventory balances include
$3,700 of inventory from businesses acquired in 1997.
4. Environmental Contingency
The Company has been identified as a potentially
responsible party by various federal and state
authorities for clean up or removal of waste from
various disposal sites. At March 31, 1997, the accrued
liability for environmental remediation represents
management's best estimate of the costs related to
environmental remediation which are considered probable
and can be reasonably estimated. The Company has not
included any insurance recovery in the accrued
environmental liability. The measurement of the
liability is evaluated quarterly based on currently
available information. As the scope of the Company's
environmental liability becomes more clearly defined,
<PAGE>9
it is possible that additional reserves may be
necessary. Accordingly, it is possible that the
Company's results of operations in future quarterly or
annual periods could be materially affected.
Management does not anticipate that its consolidated
financial condition will be materially affected by
environmental remediation costs in excess of amounts
accrued.
5. Earnings Per Share
Earnings per share is computed by dividing net
earnings by the weighted average number of common
shares outstanding. When dilutive, stock options are
included as common share equivalents using the treasury
stock method.
6. Recently Issued Accounting Standards
In February 1997, the Financial Accounting
Standards Board issued Statement of Financial
Accounting Standards (SFAS) No. 128, "Earnings Per
Share." This Statement establishes new standards for
computing and presenting earnings per share (EPS) and
applies to entities with publicly held common stock or
potential common stock. This Statement is effective
for financial statements issued for periods ending
after December 15, 1997 (earlier application is not
permitted). This Statement requires restatement of all
prior-period EPS data presented. The Company has
evaluated the provisions of SFAS No. 128 and does not
anticipate adoption to have a material effect on its
computation of EPS.
<PAGE>10
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
Item 2. Management's Discussion and Analysis of Financial
- ---------------------------------------------------------
Condition and Results of Operations
- -----------------------------------
Introduction
- ------------
Sales, net earnings and net cash provided by operating
activities have improved in the first quarter of 1997 compared to
the same quarter in 1996. The improvement in operating results
was due primarily to increased sales of aerospace fasteners and
the inclusion of businesses acquired in the last twelve months.
In the first quarter of 1997, the Company completed three
acquisitions which strengthened its existing businesses.
Sales and Operating Earnings by Segment
---------------------------------------
(Unaudited-Thousands of dollars)
Three Months Ended
March 31,
-----------------------
1997 1996
Net sales: ---------- ----------
Fasteners $ 92,982 $ 78,755
Materials 44,993 35,220
---------- ----------
$ 137,975 $ 113,975
========== ==========
Operating earnings:
Fasteners $ 9,281 $ 6,016
Materials 5,807 4,614
Unallocated corporate costs (2,310) (1,870)
---------- ----------
$ 12,778 $ 8,760
========== ==========
Net Sales
- ---------
Net sales increased $24.0 million, or 21.1 percent, compared
to the first quarter of 1996 and increased $12.8 million, or 10.2
percent, compared to the fourth quarter of 1996.
Fastener segment sales increased $14.2 million, or 18.1
percent, compared to the first quarter of 1996. Aerospace
fastener sales of $49.2 million in the first quarter of 1997 are
a $10.7 million, or 28.0 percent, increase from the first quarter
of 1996 and $4.4 million, or 9.9 percent, increase from the
fourth quarter of 1996. Based on commercial aircraft production
projections by the major aircraft manufacturers, the Company
expects this trend of improving demand for aerospace fasteners to
continue throughout 1997 and into 1998. The Company has invested
and plans to continue to invest in infrastructure to increase
capacity and support this projected expansion.
<PAGE>11
The Company's industrial and Unbrako fastener sales
increased $3.1 million, or 8.1 percent, compared to the first
quarter of 1996 and $2.3 million, or 5.8 percent, compared to the
fourth quarter of 1996. This increase is due primarily to
increased sales of Unbrako fasteners in North America and sales
by Greer Stop Nuts, Inc., a business acquired on February 24,
1997. Partially offsetting this increase was a $1.6 million
decrease in sales of Unbrako fasteners in Europe compared to the
first quarter of 1996. Sales of automotive fasteners in North
America and Europe remained level with the first quarter of 1996.
Excluding the $9.0 million of sales from the magnetic
materials businesses acquired after the first quarter of the
prior year (Flexmag Industries, Inc., Swift Levick Magnets, Ltd.
and RJF International Corporation's Bonded Magnet Business),
materials segment sales increased $785 thousand, or 2.2 percent,
compared to the first quarter of 1996 and $5.4 million, or 17.8
percent, compared to the fourth quarter of 1996. Sales of
superalloys increased $1.4 million compared to the first quarter
of 1996 and $3.3 million compared to the fourth quarter of 1996.
This increase is driven by increased demand from the aerospace,
land-based turbine and medical markets. Excluding sales from
acquired businesses, sales of magnetic materials decreased $620
thousand compared to the first quarter of 1996, but increased
$2.1 million compared to the fourth quarter of 1996. The
increase from the fourth quarter of 1996 is attributed to higher
sales to the personal computer and telecommunications markets.
Operating Earnings
- ------------------
Operating earnings of the fastener segment improved
significantly from $6.0 million, or 7.6 percent of sales, in the
first quarter of 1996 to $9.3 million, or 10.0 percent of sales,
in the first quarter of 1997. The improvement in earnings is
attributed to increased sales of aerospace fasteners and cost
reductions attributed to the Company's investment in new
equipment and employee training programs. The operating earnings
from Mecair Aerospace Industries, Inc. and Greer Stop Nut, Inc.,
two companies recently acquired, also contributed to this
increase.
In the materials segment, operating earnings increased from
$4.6 million, or 13.1 percent of sales, in the first quarter of
1996 to $5.8 million, or 12.9 percent of sales, in the first
quarter of 1997. The improvement in operating earnings is
attributed to a higher volume and better product mix of
superalloy sales and operating earnings from the recently
acquired magnetic material businesses noted above.
<PAGE>12
Other Income and Expense
- ------------------------
Due to higher levels of interest bearing cash, interest
income increased from $60 thousand in the first quarter of 1996
to $340 thousand in the first quarter of 1997. Due to higher
levels of debt, interest expense increased from $1.6 million in
the first quarter of 1996 to $2.3 million in the first quarter of
1997.
Orders and Backlog
- ------------------
Incoming orders for the first quarter of 1997 were $163.4
million compared to $127.9 million in the first quarter of 1996,
a 27.8 percent increase. The increase in orders is attributed to
the $16.2 million increase in orders received by the Aerospace
Products Division, $6.2 million increase in orders for
superalloys and orders received by the recently acquired magnetic
materials businesses of $9.1 million. Partially offsetting these
increases were the $1.8 million decrease in orders received for
automotive fasteners sold in North America and the $1.4 million
decrease in orders received for Unbrako Products sold in Europe.
Backlog at March 31, 1997 was $210.1 million, compared to $149.4
million on the same date a year ago and $181 million at December
31, 1996.
Acquisitions
- ------------
As discussed in Note 2 to the financial statements, the
Company acquired three businesses in the first quarter of 1997.
In January 1997, the Company acquired all of the outstanding
shares of Postkey Ltd. (Postkey) located in Nuneaton, England for
$1.2 million. Postkey is a supplier of tooling and tool services
to the United Kingdom fastener market with 1996 sales of
approximately $900 thousand. This acquisition increases the
Company's market penetration into the United Kingdom tool market
and expands the Company's cylindrical thread roll die technical
know-how. On February 24, 1997, the Company acquired all of the
outstanding shares of Greer Stop Nut, Inc. (Greer), a
manufacturer of nylon insert prevailing torque (locking) nuts,
located in Nashville, Tennessee for $10 million. In 1996, Greer
had sales of approximately $13.1 million. The acquisition of
Greer adds a complementary branded product line to the Company's
Unbrako business. On March 7, 1997, the Company acquired the
assets of RJF International Corporation's (RJF) Bonded Magnet
Business, a manufacturer of flexible ferrite bonded magnets,
located in Cincinnati and Marietta, Ohio for $9.2 million. In
1996, RJF's Bonded Magnet Business had sales of approximately
$9.2 million. These assets will be relocated to the Company's
current magnetic manufacturing facility in Marietta, Ohio.
<PAGE>13
Liquidity and Capital Resources
- -------------------------------
Management considers liquidity to be the ability to generate
adequate amounts of cash to meet its needs and capital resources
to be the resources from which such cash can be obtained,
principally from operating and external sources. The Company
believes that capital resources available to it will be
sufficient to meet the needs of its business, both on a short-
term and long-term basis.
Cash flow provided by or used in operating activities,
investing activities and financing activities is summarized in
the condensed statements of consolidated cash flows. Net cash
provided by operating activities increased by $13.0 million
compared to the first quarter of 1996 primarily due to the $11.2
million improvement in changes in working capital.
The increase in cash used in investing activities is
attributed to 1997 payments for the acquisitions of Greer ($10
million) and RJF ($9.2 million). Additionally, the Company spent
$12.9 million for capital expenditures in the first quarter of
1997 and has budgeted $35 million for the full year of 1997, as
reported on Form 10-K for the year ended December 31, 1996.
Net assets held for sale included in the December 31, 1996
consolidated balance sheet includes the land and building located
in Puerto Rico, related to the former site of an Unbrako
manufacturing operation closed in 1992, and a small parcel of
land located in Newtown, Pennsylvania. In January 1997, the
Company sold the land and building in Puerto Rico for $1.1
million and these proceeds are included in the consolidated cash
flow from investing activities.
The Company's total debt to equity ratio was 64 percent at
March 31, 1997, compared to 65 percent at December 31, 1996.
Total debt was $116.0 million at March 31, 1997 and $115.3
million at December 31, 1996. As of March 31, 1997, under the
terms of the existing credit agreements, the Company is permitted
to incur an additional $31 million in debt.
<PAGE>14
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
---------------------------------------
PART II
-------
OTHER INFORMATION
-----------------
Item 4. Submission of Matters to Vote of Security Holders
- ---------------------------------------------------------
None
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits
11 -Computation of Earnings Per Share Statement.
(b) No reports on Form 8-K were filed during the quarter ended
March 31, 1997.
<PAGE>15
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
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.
SPS TECHNOLOGIES, INC.
----------------------
(Registrant)
Date: May 12, 1997 /s/William M. Shockley
------------ ----------------------
William M. Shockley
Vice President,
Chief Financial Officer
and Controller
Mr. Shockley is signing on behalf of the registrant and as the
Chief Financial Officer of the registrant.
<PAGE>16
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
EXHIBIT INDEX
Exhibit 11 - Computation of Earnings Per Share Statement
<PAGE>17
Exhibit 11
----------
SPS TECHNOLOGIES, INC. AND SUBSIDIARIES
Computation of Earnings Per Share Statement
(Thousands of dollars, except share data)
Three Months Ended
March 31,
-----------------------
1997 1996
---------- ----------
Net earnings $ 7,120 $ 5,040
========== ==========
Weighted average number of common
shares outstanding during the period 6,016,112 5,915,412
Weighted average number of maximum
shares subject to exercise under
outstanding stock options at end
of period 608,785 672,760
---------- ----------
6,624,897 6,588,172
Less treasury shares assumed
purchased with proceeds from
assumed exercise of outstanding
options (a) 287,499 366,229
---------- ----------
Weighted average number of common
and common equivalent shares
outstanding after assumed exercise
of options 6,337,398 6,221,943
========== ==========
Earnings per share based on above
assumptions (b) $ 1.12 $ .81
========== ==========
Earnings per share as reported $ 1.12 $ .81
========== ==========
(a) All options are exercisable under a nonqualified plan. The
proceeds from assumed exercise of options aggregated
$18,609,790 and $20,373,318 in the three month period ended
March 31, 1997 and 1996. The proceeds and number of
treasury shares assumed purchased were determined on the
most likely exercise assumption.
(b) Primary and fully diluted earnings per share are the same
for each period presented.
<PAGE>21
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> MAR-31-1997
<CASH> 15,383
<SECURITIES> 0
<RECEIVABLES> 86,843
<ALLOWANCES> 1,812
<INVENTORY> 101,092
<CURRENT-ASSETS> 224,366
<PP&E> 285,025
<DEPRECIATION> 125,932
<TOTAL-ASSETS> 441,528
<CURRENT-LIABILITIES> 113,548
<BONDS> 99,206
0
0
<COMMON> 6,673
<OTHER-SE> 175,174
<TOTAL-LIABILITY-AND-EQUITY> 441,528
<SALES> 137,975
<TOTAL-REVENUES> 137,975
<CGS> 108,645
<TOTAL-COSTS> 108,645
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,276
<INCOME-PRETAX> 10,720
<INCOME-TAX> 3,600
<INCOME-CONTINUING> 7,120
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,120
<EPS-PRIMARY> 1.12
<EPS-DILUTED> 1.12
</TABLE>
