<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (FEE REQUIRED)
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 (NO FEE REQUIRED)
For the transition period from _________ to _________
COMMISSION FILE NUMBER 33-98828
PIONEER AMERICAS ACQUISITION CORP.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
DELAWARE 06-1420850
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4200 NATIONSBANK CENTER, 700 LOUISIANA STREET, HOUSTON, TEXAS 77002
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(ZIP CODE)
(713)225-3831
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
Indicate by check mark whether the Registrant (1) has filed all report
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or 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 .
--- ---
On May 10, 1996, there were outstanding 1,000 shares of the
Registrant's Common Stock, $.01 par value. All of such shares are owned by
Pioneer Companies, Inc.
The Registrant meets the conditions set forth in General Instruction
(H)(1)(a) and (b) of Form 10-Q, and is therefore filing this form with the
reduced disclosure format permitted by General Instruction (H)(2) of Form 10-Q.
<PAGE> 2
TABLE OF CONTENTS
PART I--FINANCIAL INFORMATION
<TABLE>
<CAPTION>
PAGE
----
<S> <C> <C>
Item 1. Consolidated Financial Statements
[ ] Consolidated Balance Sheets--March 31, 1996 and December 31, 1995 3
[ ] Consolidated Statements of Operations--Three Months Ended March 31, 1996 and Predecessor
Company Three Months Ended March 31, 1995 5
[ ] Consolidated Statements of Cash Flows--Three Months Ended March 31, 1996 and Predecessor
Company Three Months Ended March 31, 1995 6
[ ] Notes to Consolidated Financial Statements 8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10
</TABLE>
PART II--OTHER INFORMATION
<TABLE>
<S> <C> <C>
Item 6. Exhibits and Reports on Form 8-K 12
</TABLE>
2
<PAGE> 3
PIONEER AMERICAS ACQUISITION CORP.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
---------- ---------
<S> <C> <C>
Assets
Current assets:
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 10,939 $ 11,218
Accounts receivable, less allowance for doubtful accounts of $1,511 at
March 31, 1996 and $1,424 at December 31, 1995 . . . . . . . . . . . . . . . . . 28,265 29,385
Due from parent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,339 574
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,913 13,004
Prepaid expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,091 3,766
----------- -----------
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57,547 57,947
Property, plant, and equipment, at cost:
Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,711 1,711
Buildings and improvements . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,955 13,997
Machinery and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69,039 67,587
Cylinders and tanks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,503 4,503
Construction in progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,141 9,394
----------- -----------
106,349 97,192
Less accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . (10,131) (7,795)
----------- -----------
96,218 89,397
Other assets, net of accumulated amortization of $1,428 at March 31, 1996 and
$1,068 at December 31, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,537 11,664
Excess cost over the fair value of net assets acquired, net of accumulated amortization
of $4,497 at March 31, 1996 and $3,311 at December 31, 1995 . . . . . . . . . . . . . 112,578 108,940
----------- -----------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 278,880 $ 267,948
=========== ===========
</TABLE>
See notes to consolidated financial statements.
3
<PAGE> 4
PIONEER AMERICAS ACQUISITION CORP.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
--------- ---------
<S> <C> <C>
Liabilities and stockholders' equity
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . $ 14,232 $ 20,183
Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . 27,609 23,877
Returnable deposits . . . . . . . . . . . . . . . . . . . . . . . . 3,320 3,437
Current maturities of long-term debt . . . . . . . . . . . . . . . -- --
--------- ---------
Total current liabilities . . . . . . . . . . . . . . . . . . 45,161 47,497
Bank Credit Facility . . . . . . . . . . . . . . . . . . . . . . . . . . -- --
13 3/8% First Mortgage Notes due 2005 . . . . . . . . . . . . . . . . . . 135,000 135,000
Minority interest owned by parent . . . . . . . . . . . . . . . . . . . . 225 --
Long-term debt, less current maturities . . . . . . . . . . . . . . . . . 8,017 --
Returnable deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,281 3,281
Accrued pension and other employee benefits . . . . . . . . . . . . . . . 13,934 13,573
Future tax effects . . . . . . . . . . . . . . . . . . . . . . . . . . . -- --
Other long-term liabilities . . . . . . . . . . . . . . . . . . . . . . . 14,999 13,170
Commitments and contingencies . . . . . . . . . . . . . . . . . . . . . . -- --
Stockholders' equity:
Common stock, $.01 par value, authorized 1,000 shares, issued and
outstanding 1,000 shares . . . . . . . . . . . . . . . . . . . . 1 1
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . 51,077 49,652
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . 7,185 5,774
--------- ---------
Total stockholders' equity . . . . . . . . . . . . . . . . . 58,263 55,427
--------- ---------
Total liabilities and stockholders' equity . . . . . . . . . $ 278,880 $ 267,948
========= =========
</TABLE>
See notes to consolidated financial statements.
4
<PAGE> 5
PIONEER AMERICAS ACQUISITION CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
PREDECESSOR
COMPANY
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1996 1995
------------ --------------
<S> <C> <C>
Revenues . . . . . . . . . . . . . . . . . . . . . . . $ 48,896 $ 47,842
Costs and expenses:
Cost of sales . . . . . . . . . . . . . . . . . . 34,749 30,628
Selling, general and administrative . . . . . . . 6,837 5,241
Interest expenses . . . . . . . . . . . . . . . . 4,229 1,375
----------- -------------
Total costs and expenses . . . . . . . . . 45,815 37,244
Other income, net . . . . . . . . . . . . . . . . . . . 85 379
Minority interest . . . . . . . . . . . . . . . . . . . 110 --
----------- -------------
Income before taxes and extraordinary item . . . . . . 3,276 10,977
Provision for income taxes. . . . . . . . . . . . . . . (1,865) (4,503)
----------- -------------
Income before extraordinary item . . . . . . . . . . . 1,411 6,474
Extraordinary item, early extinguishment of debt
(net of income tax benefit of $2,140) . . . . . . . -- (3,420)
----------- -------------
Net income . . . . . . . . . . . . . . . . . . . . . . $ 1,411 $ 3,054
=========== =============
Net income per share . . . . . . . . . . . . . . . . . $ 1,411
===========
Weighted average number of shares of common stock
outstanding . . . . . . . . . . . . . . . . . . . . 1
===========
</TABLE>
See notes to consolidated financial statements.
5
<PAGE> 6
PIONEER AMERICAS ACQUISITION CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
PREDECESSOR
COMPANY
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1996 1995
------------ ------------
<S> <C> <C>
Operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . $ 1,411 $ 3,054
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization . . . . . . . . . . 4,568 3,673
Minority interest owned by Parent . . . . . . . . (110) --
Write-off of previous finance costs . . . . . . . -- 1,282
Equity in earnings of BII and VVLC . . . . . . . -- (211)
Future tax effects . . . . . . . . . . . . . . . -- (1,707)
Utilization of NOL . . . . . . . . . . . . . . . 1,425 --
Changes in operating assets and liabilities
(net of purchase of Kemira Water Treatment,
Inc.):
Accounts receivable . . . . . . . . . . . . . 2,257 (2,013)
Due from affiliates . . . . . . . . . . . . . (765) --
Inventories . . . . . . . . . . . . . . . . . (490) (895)
Prepaid expenses . . . . . . . . . . . . . . . 1,720 562
Other assets . . . . . . . . . . . . . . . . . 129 (1,078)
Accounts payable . . . . . . . . . . . . . . . (8,118) 1,630
Accrued liabilities . . . . . . . . . . . . . 3,732 (2,163)
Returnable deposits . . . . . . . . . . . . . (117) (303)
Other long-term liabilities . . . . . . . . . 361 (384)
--------- ---------
Net cash provided by operating activities . . . . . . . 6,003 1,447
Investing activities:
Purchase of Kemira Water Treatment, Inc. . . . . (1,237) --
Purchases of property, plant and equipment . . . (5,114) (2,974)
--------- ---------
Net cash used in investing activities . . . . . . . . . (6,351) (2,974)
Financing activities:
Payments on long-term debt . . . . . . . . . . . -- (98,470)
Proceeds from borrowings on long-term debt . . . -- 100,000
Dividends paid on common stock . . . . . . . . . -- (2,341)
--------- ---------
Net cash used in financing activities . . . . . . . . . -- (811)
--------- ---------
Decrease in cash . . . . . . . . . . . . . . . . . . . (348) (2,338)
Cash at beginning of period . . . . . . . . . . . . . . 11,218 3,310
Cash acquired in purchase . . . . . . . . . . . . . . . 69 --
--------- ---------
Cash at end of period . . . . . . . . . . . . . . . . . $ 10,939 $ 972
========= =========
</TABLE>
See notes to consolidated financial statements.
6
<PAGE> 7
PIONEER AMERICAS ACQUISITION CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
PREDECESSOR
COMPANY
THREE MONTHS THREE MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1996 1995
----------- ------------
<S> <C> <C>
Supplemental disclosures of cash flow information:
Cash paid during the period for:
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 231 $ 2,348
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 2,150 1,300
Supplemental schedule of noncash investing and financing
activities:
The allocation of the purchase price of Kemira Water Treatment,
Inc. is summarized as follows:
Cash paid for purchase . . . . . . . . . . . . . . . . . $ 1,237
Long-term note issued to seller . . . . . . . . . . . . 8,017
Liabilities assumed . . . . . . . . . . . . . . . . . . 2,167
Minority interest . . . . . . . . . . . . . . . . . . . 335
----------
Fair value of assets acquired . . . . . . . . . . . $ 11,756
==========
</TABLE>
See notes to consolidated financial statements.
7
<PAGE> 8
PIONEER AMERICAS ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1995
1. ORGANIZATION AND BASIS OF PRESENTATION
Pioneer Americas Acquisition Corp. ("Pioneer") was incorporated in Delaware
on March 6, 1995. Pioneer is 100% owned by Pioneer Companies, Inc. ("PCI").
The consolidated financial statements include the accounts of Pioneer and its
subsidiaries (collectively referred to as the "Company"). All significant
intercompany balances and transactions have been eliminated in consolidation.
BASIS OF PRESENTATION EFFECTIVE APRIL 20, 1995
On April 20, 1995, pursuant to a Stock Purchase Agreement, dated as of March
24, 1995 (the "Acquisition Agreement"), by and among PCI, Pioneer, and the
holders of the outstanding common stock and other common equity interests (the
"Sellers") of Pioneer Americas, Inc. (the "Predecessor Company"), Pioneer
acquired all of such stock and interests (the "Acquisition") for a purchase
price of approximately $176 million.
The Acquisition has been accounted for as a purchase transaction and,
accordingly, the consolidated financial statements subsequent to April 20, 1995
reflect the purchase price, including transaction costs, allocated to tangible
and intangible assets acquired and liabilities assumed, based on their
estimated fair values as of April 20, 1995. The consolidated balance sheet,
statement of operations and statement of cash flows at and for all periods
ending March 31, 1996 are unaudited and reflect all adjustments, consisting of
normal recurring items, which management considers necessary for a fair
presentation. Operating results for the first three months of 1996 are not
necessarily indicative of results to be expected for the year ending December
31, 1996.
Certain information and disclosures normally included in the notes to the
financial statements have been condensed or omitted as permitted by the rules
and regulations of the Securities and Exchange Commission. The accompanying
unaudited financial statements should be read in conjunction with the financial
statements contained in the Annual Report on Form 10-K for the year ended
December 31, 1995.
On February 2, 1996, the purchase of Kemira Water Treatment, Inc.
("KWT"), including certain royalty and license agreements, from a subsidiary of
Kemira Oy of Finland ("Kemira") was completed. The purchase price was
approximately $9.6 million, of which $1.6 million was paid in cash and $8.0
million in a noted issued to Kemira. The $8.0 million note bears an interest
rate equal to LIBOR plus 1.2%. The principal on the note is payable in four
equal installments on March 31, 2000, March 31, 2001, March 31, 2002 and
December 31, 2002, and interest is payable annually on December 31. KWT
produces specialty and commodity inorganic coagulants, including polyaluminum
chloride, aluminum sulfate, sodium aluminate and ferric sulfate, at its plant
in Savannah, Georgia for sale to the water treatment market in the eastern
United States and the Caribbean.
The combined operations of Imperial West Chemical Co. and KWT are now
conducted by a new company, Kemwater North America Company ("Kemwater"), fifty
percent of the common stock of which is held by PCI and fifty percent of the
common stock of which is held by a subsidiary of Pioneer. The Company also
owns all of the outstanding shares of Kemwater's preferred stock. The
financial statements contain the results of KWT subsequent to February 2, 1996.
8
<PAGE> 9
PIONEER AMERICAS ACQUISITION CORP.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
1. ORGANIZATION AND BASIS OF PRESENTATION (CONTINUED)
PRO FORMA FINANCIAL DATA
The following pro forma financial data present the consolidated financial
results of operations as if the Acquisition had occurred at the beginning of
the period presented and do not purport to be indicative of either future
results of operations or results that would have occurred had the Acquisition
actually been made as of such date.
PRO FORMA COMBINED SUMMARY STATEMENTS OF OPERATIONS
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31,
----------------------------------
1996 1995
---------------- ---------------
ACTUAL PRO FORMA
-------------- -----------------
<S> <C> <C>
Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48,896 $ 47,842
Income before extraordinary item . . . . . . . . . . . . . . . . . . . . 1,411 4,198
Extraordinary item, early extinguishment of debt (net of income tax
benefit of $2,140) . . . . . . . . . . . . . . . . . . . . . . . . . -- (3,420)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,411 778
</TABLE>
2. INVENTORIES
Inventories consist of the following:
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
------------- -------------
1996 1995
------------- -------------
(IN THOUSANDS)
<S> <C> <C>
Raw materials, supplies, and parts . . . . . . . . . . . . . . . . . . . $ 11,130 $ 9,849
Finished goods and work-in-process . . . . . . . . . . . . . . . . . . . 3,783 3,155
------------- -------------
$ 14,913 $ 13,004
============= =============
</TABLE>
3. CONTINGENCIES
The Company is subject to various legal proceedings and potential claims
arising in the ordinary course of its business. In the opinion of management,
the Company has adequate legal defenses and/or insurance coverage with respect
to these matters and management does not believe that they will materially
affect the Company's operations or financial position.
9
<PAGE> 10
PIONEER AMERICAS ACQUISITION CORP.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following discussion and analysis should be read in conjunction with the
financial statments and the notes thereto.
This item will discuss and analyze the financial condition of the Company at
March 31, 1996 and the results of operations of the Company for the three
months ended March 31, 1996 and the Predecessor Company for the three
months ended March 31, 1995.
The following table sets forth certain operating data of the Company and the
Predecessor Company for the periods indicated.
<TABLE>
<CAPTION>
PREDECESSOR
COMPANY
THREE THREE
MONTHS MONTHS
ENDED ENDED
MARCH 31, MARCH 31,
1996 1995
---------- ---------
(IN THOUSANDS)
<S> <C> <C>
Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 48,896 $ 47,842
Cost of sales . . . . . . . . . . . . . . . . . . . . . . . . . 34,749 30,628
Selling, general and administrative expenses . . . . . . . . . 6,837 5,241
Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,229 1,375
Other income, net . . . . . . . . . . . . . . . . . . . . . . . 85 379
Minority interest . . . . . . . . . . . . . . . . . . . . . . . 110 --
---------- ---------
Income (loss) before income taxes and extraordinary item . . . 3,276 10,977
Provision for income taxes . . . . . . . . . . . . . . . . . . (1,865) (4,503)
---------- ---------
Net income (loss) before extraordinary expense . . . . . . . . 1,411 6,474
Extraordinary expense (net of income tax benefit of $2,140) . . -- (3,420)
---------- ---------
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . . $ 1,411 $ 3,054
========== =========
</TABLE>
10
<PAGE> 11
RESULTS OF OPERATIONS -(CONTINUED)
Revenues
Revenues increased by $1.0 million or 2.2% to $48.9 million for the three
months ended March 31, 1996 compared to the three months ended March 31, 1995.
The increase is a result of higher volumes, partially offset by lower
electrochemical unit ("ECU") prices. The average ECU price in the first
quarter of 1996 decreased 12% from the first quarter of 1995.
Cost of Sales
Cost of sales increased by $4.1 million or 13.5% to $34.7 million for three
months ending March 31, 1996. This increase is attributable to higher volumes
sold and higher raw material prices, particularly electrolytic power which
increased due to substantially higher natural gas prices resulting from the
harsh winter.
Selling, General and Administration
Selling, general and administrative expense increased by $1.6 million or
30.5% to $6.8 million in 1996 primarily due to the increased amortization of
goodwill resulting from the Acquisition and additional accrued compensation
pursuant to the Company's incentive compensation program.
Interest
Interest expense increased by $2.9 million to $4.2 million in the first
quarter of 1996 compared to the first quarter of 1995 due to indebtedness
incurred as result of the Acquisition.
Other Income, Net
Other income, net was $0.3 million lower in the first quarter of 1996 due to
insurance proceeds recognized in the 1995 period.
Income Before Taxes and Extraordinary Item
As a result of the above, net income before taxes and extraordinary expense
decreased $7.7 million to $3.3 million from the 1995 quarter.
Provision for Income Taxes
Provision for income taxes in 1996 compared to 1995 decreased by $2.6
million due to a decrease in the pre-tax income. Taxable income is higher than
book income due to the non-deductibility of amortization of the excess cost
over the fair value of the net assets acquired. A provision is recorded on the
income statement; however, federal income taxes payable are reduced due to the
utilization of the net operating loss carryforward.
Extraordinary Item
An extraordinary item of $3.4 million net of an income tax benefit of $2.1
million recorded during the first quarter of 1995 was due to costs incurred,
and previously capitalized costs written off, pertaining to debt refinanced by
the Predecessor Company in 1995 prior to the Acquisition.
11
<PAGE> 12
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits -- The following exhibit is filed as part of this report:
27 -- Financial Data Schedule
(b) Reports on Form 8-K
The Company filed a Current Report on Form 8-K dated February 2, 1996.
The report disclosed under Item 5, Other Events, the participation by
a subsidiary of the Company in the purchase of Kemira Water
Treatment, Inc., a company which produces specialty and commodity
inorganic coagulants at its plant in Savannah, Georgia, and related
technology and product supply agreements. No financial statements
were filed with the report.
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 hereunto duly authorized.
PIONEER AMERICAS ACQUISITION CORP.
May 15, 1996 By: /s/ Philip J. Ablove
--------------------------------------
Vice President and
Chief Financial Officer
12
<PAGE> 13
INDEX TO EXHIBITS
27 -- Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 10,939
<SECURITIES> 0
<RECEIVABLES> 29,776
<ALLOWANCES> 1,511
<INVENTORY> 14,913
<CURRENT-ASSETS> 57,547
<PP&E> 106,349
<DEPRECIATION> (10,131)
<TOTAL-ASSETS> 278,880
<CURRENT-LIABILITIES> 45,161
<BONDS> 143,017
<COMMON> 1
0
0
<OTHER-SE> 58,262
<TOTAL-LIABILITY-AND-EQUITY> 278,880
<SALES> 48,896
<TOTAL-REVENUES> 48,896
<CGS> 34,749
<TOTAL-COSTS> 34,749
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 4,229
<INCOME-PRETAX> 3,276
<INCOME-TAX> 1,865
<INCOME-CONTINUING> 1,411
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,411
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
