<PAGE>
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
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 0-873
________________________________________________
PACIFIC TELECOM, INC.
(Exact name of registrant as specified in its charter)
Washington 91-0644974
_______________________________________________________________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
805 Broadway, P.O. Box 9901, Vancouver, Washington 98668 - 8701
_______________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (360)905-5800
____________________
No Change
_______________________________________________________________________
(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
___ ___
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date.
Common Stock, no par value 100 shares
_______________________________________________________________________
(Title of Class) (Outstanding at May 3, 1996)
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.
<PAGE>
<TABLE>
PACIFIC TELECOM, INC.
INDEX
_____
<CAPTION>
PART I FINANCIAL INFORMATION: PAGE NO.
_____________________ _______
<S> <C>
Item 1 - Financial Statements:
Consolidated Balance Sheets -
March 31, 1996 and December 31, 1995 3
Consolidated Statements of Income -
Three months ended March 31, 1996 and 1995 4
Consolidated Statements of Cash Flows -
Three months ended March 31, 1996 and 1995 5
Condensed Notes to Consolidated Financial Statements 6-7
Item 2 - Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-10
PART II OTHER INFORMATION:
_________________
Item 6 - Exhibits and Reports on Form 8-K 11
Signatures 12
</TABLE>
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<PAGE>
<TABLE>
PART I FINANCIAL INFORMATION
Item 1. - Financial Statements
<CAPTION>
PACIFIC TELECOM, INC.
Consolidated Balance Sheets
(Unaudited)
ASSETS
______
March 31, December 31,
1996 1995
_________ ___________
(In thousands)
<S> <C> <C>
Current assets:
Cash and temporary cash investments $ 7,725 $ 6,331
Accounts receivable 88,804 81,528
Accounts and notes receivable-affiliates (Note 2) 34,396 41,234
Material and supplies (at average cost) 7,978 7,082
Inventory - North Pacific Cable 60,535 60,571
Other 13,630 9,522
_________ _________
Total current assets 213,068 206,268
Investments 124,882 124,555
Plant in service:
Telecommunications 1,561,944 1,570,262
Other 22,512 22,655
Less accumulated depreciation 674,644 678,328
_________ _________
909,812 914,589
Construction work in progress 10,478 13,970
_________ _________
Net plant 920,290 928,559
Intangible assets - net 375,529 378,214
Deferred charges 16,041 16,528
_________ _________
Total assets $1,649,810 $1,654,124
_________ _________
_________ _________
LIABILITIES AND CAPITALIZATION
______________________________
Current liabilities:
Currently maturing long-term debt $ 5,567 $ 5,535
Notes payable 72,000 90,000
Accounts payable 59,102 48,395
Accrued liabilities 54,677 58,736
Dissenters' rights 27,930 27,930
Accrued access and unearned revenue 8,552 8,354
_________ _________
Total current liabilities 227,828 238,950
Long-term debt 459,053 459,502
Deferred income taxes 129,956 126,539
Unamortized investment tax credits 6,498 6,929
Other long-term liabilities 49,439 48,502
Minority interest 18,672 18,288
Shareholder's equity:
Common stock - -
Additional paid-in capital 225,943 225,943
Retained earnings 532,421 529,471
_________ _________
Total shareholder's equity 758,364 755,414
_________ _________
Total liabilities and capitalization $1,649,810 $1,654,124
_________ _________
_________ _________
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
-3-
<PAGE>
<TABLE>
PACIFIC TELECOM, INC.
Consolidated Statements of Income
(Unaudited)
<CAPTION>
Three Months Ended
March 31,
------------------
1996 1995
-------- --------
(In thousands)
<S> <C> <C>
Operating revenues:
Local network service $ 33,255 $ 27,260
Network access service 63,471 47,854
Long distance network service 423 62,070
Private line service - 15,228
Sales of cable capacity 75 1,560
Cellular 8,768 6,118
Other 18,438 21,621
________ ________
Total operating revenues 124,430 181,711
________ ________
Operating expenses:
Plant support 22,035 30,243
Depreciation and amortization 25,340 27,560
Leased circuits 407 8,793
Access expense - 22,366
Other operating expense 7,269 9,911
Cost of cable sales 36 1,058
Customer operations 13,196 18,560
Administrative support 16,004 19,036
Taxes other than income taxes 4,788 4,029
________ ________
Total operating expenses 89,075 141,556
________ ________
Operating income 35,355 40,155
________ ________
Other income (expense):
Interest expense (10,053) (9,998)
Interest income 605 624
Gain on sale of subsidiaries and investments 815 -
Other (509) (3,669)
________ ________
Other income (expense) - net (9,142) (13,043)
________ ________
Income before income taxes 26,213 27,112
Income taxes 10,196 10,385
________ ________
Net income $ 16,017 $ 16,727
________ ________
________ ________
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
PACIFIC TELECOM, INC.
Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
__________________
1996 1995
_______ ______
(In thousands)
Cash Flows from Operating Activities:
Net income $ 16,017 $ 16,727
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation and amortization 27,197 29,727
Deferred income taxes and investment tax credits, net 1,624 (124)
Gain on sale of subsidiaries and investments (815) -
Gains (losses) from unconsolidated entities, net (821) 45
Accounts receivable and other current assets (5,438) 2,356
Inventory - North Pacific Cable 35 1,056
Accounts payable and accrued liabilities 10,784 1,957
Other 3,694 748
_______ _______
Net cash provided by operating activities 52,277 52,492
_______ _______
Cash Flows from Investing Activities:
Construction expenditures (19,892) (24,618)
Cost of business acquired - (197,905)
Investments in and advances to affiliates (1,332) (16)
Proceeds from sales of assets 1,822 750
_______ _______
Net cash used by investing activities (19,402) (221,789)
_______ _______
Cash Flows from Financing Activities:
(Decrease) increase in short-term debt (18,000) 211,224
Proceeds from issuance of long-term debt 1,740 -
Purchase of common stock - (823)
Dividends paid (13,066) (13,072)
Payments of long-term debt (2,155) (1,524)
_______ _______
Net cash (used) provided by financing activities (31,481) 195,805
_______ _______
Increase in Cash and Temporary Cash Investments 1,394 26,508
Cash and Temporary Cash Investments at Beginning of Period 6,331 9,883
_______ _______
Cash and Temporary Cash Investments at End of Period $ 7,725 $ 36,391
_______ _______
_______ _______
Supplemental Disclosures of Cash Flow Information:
Cash paid during the three months ended March 31 for:
Interest $ 15,121 $ 13,251
Income Taxes $ 466 $ 8,912
[FN]
See accompanying notes to consolidated financial statements.
-5-
<PAGE>
Notes to Consolidated Financial Statements
(Unaudited)
1. The consolidated financial statements include all normal adjustments
which, in the opinion of management, are necessary to present
fairly the consolidated financial position at March 31, 1996,
and the consolidated results of operations and cash flows for the three
months ended March 31, 1996 and 1995. These consolidated financial
statements should be read in conjunction with the financial statements
and related notes included in the latest annual report filed on Form
10-K of Pacific Telecom, Inc. (Company). The consolidated results of
operations presented herein are not necessarily indicative of the
results to be expected for the year. The 1995 consolidated financial
statements reflect certain reclassifications to conform to the
current year presentation. These reclassifications have no effect on
previously stated net income.
2. The Company is a wholly-owned subsidiary of PacifiCorp Holdings, Inc.
(Holdings), which is a wholly-owned subsidiary of PacifiCorp. See Note
2 to the Consolidated Financial Statements included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1995, for
information related to the affiliated note for amounts to be paid
dissenters relating to the minority buy-out.
3. Certain loan agreements contain provisions restricting the payment
of cash dividends. Retained earnings of approximately $240.4 million
were available for dividends and other distributions at March 31, 1996.
The Company's ratio of earnings to fixed charges for the three months
ended March 31, 1996, calculated in accordance with Item 503 of
Regulation S-K under the Securities Exchange Act of 1934, was 3.3 to 1.
4. The Company's effective combined state and federal income tax rates were
38.9 percent and 38.3 percent for the three months ended March 31, 1996 and
1995, respectively. The difference between taxes calculated at the
statutory federal tax rates and the effective combined rates for 1996 and
1995 is reconciled as follows:
1996 1995
____ ____
Federal statutory rate 35.0% 35.0%
State income taxes, net of federal benefit 3.6 4.4
Amortization of investment tax credits (1.6) (3.6)
Amortization of excess deferred income taxes (.6) (.7)
Amortization of excess cost 2.9 3.6
Other (.4) (.4)
____ ____
Effective tax rate 38.9% 38.3%
____ ____
____ ____
The components of income tax expense are as follows:
Three Months Ended
March 31,
___________________
1996 1995
______ ______
(In thousands)
Federal income taxes $ 8,728 $ 8,532
State income taxes 1,468 1,853
______ ______
$10,196 $10,385
______ ______
______ ______
Income taxes currently payable $ 8,617 $10,707
Deferred income taxes 2,011 678
Amortization of deferred investment tax credits (432) (1,000)
______ ______
$10,196 $10,385
______ ______
______ ______
-6-
<PAGE>
Notes to Consolidated Financial Statements
(Unaudited)
5. On August 7, 1995, the Company closed the sale of the stock of Alascom,
Inc.(Alascom) to AT&T Corp. (AT&T) in a transaction providing $365.5 million
in proceeds. See Note 16 to the Consolidated Financial Statements included
in the Company's Annual Report on Form 10-K for the year ended December 31,
1995, for information related to this transaction.
-7-
<PAGE>
Management's Discussion and Analysis of
Financial Condition and Results of Operations*
Three Months Ended March 31
___________________________
Results of Operations
_____________________
The Company's net income for the three months ended March 31, 1996 was $16.0
million, a decrease of 4.2 percent compared to net income of $16.7 million
for the same period in 1995. This decrease was attributable to the sale of
Alascom in August, 1995. Operating income decreased 12 percent or $4.8 million
in the first quarter of 1996 compared to 1995. In the first quarter of
1995, Alascom's contribution to operating income was $15.3 million. This
decrease was offset in part by the acquisition of local exchange assets in
Colorado. The Colorado acquisition contributed operating income of $5.2 million
in the first quarter of 1996 and $2.6 million in the first quarter of
1995. Acquisitions of LEC assets in Washington and Oregon late in 1995
contributed operating income of $3.4 million in the first quarter of 1996.
The resulting net increase in operating income from all the 1995 acquisitions
for the first quarter of 1996 was $6.0 million. Also increasing operating
income were increases resulting from LEC internal access line growth, revised
local exchange revenue estimates for prior years and cellular customer growth.
Operating revenues for the first quarter of 1996 were $124.4 million, a
decrease of $57.3 million, or 31.5 percent, compared to the same period in
1995. Operating expenses in the first quarter of 1996 were $89.0 million, a
decrease of $52.5 million, or 37.1 percent, compared to the first quarter of
1995. See Part II, Item 7. "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in the Company's Annual Report
on Form 10-K for the year ended December 31, 1995, for information about the
North Pacific Cable.
The following table summarizes the effects of the sale of Alascom in August
1995 and the acquisition of LEC assets in 1995 on operating income for the
period ended March 31, 1996, when compared to 1995. Other material variances
are footnoted below:
<TABLE>
<CAPTION>
Consolidated Alascom Consolidated
Three Months Three Months Variance Three Months
Ended Ended due to Ended
March 31, March 31, LEC March 31,
1995 1995 Acquisitions Other 1996
___________ ___________ ___________ _____ ___________
(in millions)
<S> <C> <C> <C> <C> <C>
Operating revenues:
Local network service $ 27.3 $ 3.9 $2.0 (a) $ 33.2
Network access service 47.8 12.9 2.8 (b) 63.5
Long distance
network service 62.1 $(61.8) 0.1 - 0.4
Private line service 15.2 (15.2) - -
Sales of cable capacity 1.6 (1.5)(c) 0.1
Cellular 6.1 2.7 (d) 8.8
Other 21.6 (4.9) 0.9 0.8 18.4
_____ ____ _____ ____ _____
Total operating revenues 181.7 (81.9) 17.8 6.8 124.4
_____ ____ _____ ____ _____
Operating expenses:
Plant support 30.2 (11.2) 2.9 .1 22.0
Depreciation and
amortization 27.6 (8.5) 5.1 1.1 (e) 25.3
Leased circuits 8.8 (7.4) (1.0)(f) .4
Access expense 22.4 (22.4) - -
Other operating expense 9.9 (3.8) 0.5 0.7 7.3
Cost of cable sales 1.0 (1.0)(g) -
Customer operations 18.6 (6.4) 0.4 0.6 13.2
Administrative support 19.0 (6.4) 1.9 1.5 (h) 16.0
Taxes other than
income taxes 4.0 (0.5) 1.0 0.3 4.8
_____ ____ ____ ____ _____
Total operating expenses 141.5 (66.6) 11.8 2.3 89.0
_____ ____ ____ ____ _____
Operating income $ 40.2 $(15.3) $ 6.0 $ 4.5 $ 35.4
_____ ____ ____ ____ _____
_____ ____ ____ ____ _____
<FN>
_______________________
*Pursuant to General Instruction H (1)(a) and (b) of Form 10-Q, the
Company is substituting a management's narrative analysis of results of
operations for Item 2.
</TABLE>
-8-
<PAGE>
Managements Discussion and Analysis of
Financial Condition and Results of Operations
(a) Revenue from enhanced services, such as caller name and number
identification, automatic call back, auto recall and call trace, of
$.7 million, revenue from LEC access line growth of $.4 million
and LEC installation related charges of $.4 million due to customer
growth and certain rate increases accounted for most of the $2.0
million increase in local network service revenue.
(b) Network access service revenue grew by $2.8 million, with $1.8
million resulting from access line growth and higher minutes of
use and $.7 million resulting from revised LEC revenue estimates
for prior years. This increase was partially offset by decreased
Universal Service Fund (USF) support of $.9 million. The national
average cost per access line to provide service to rural telephone
customers (the USF benchmark) increased while the Company's cost per
access line increased at a rate below the national average. This
caused a slight decrease in the USF support received per access line.
(c) Sales of cable capacity declined by $1.5 million due to the sale
of fewer circuits.
(d) Cellular revenue grew $2.7 million due to growth in customers and
increased roaming revenues.
(e) Depreciation expense was higher by $1.1 million, which included $.8
million due to increased LEC depreciable plant balances and $.2
million due to growth in cellular operations.
(f) Leased circuits expense decreased $1.0 million in 1996 due to the
cable outage restoration services provided in February 1995.
(g) Cost of cable sales decreased by $1.0 million due to the sale of fewer
circuits.
(h) Administative support increased $1.5 million mainly due to a higher
corporate support costs for information systems and benefits.
Other expense - net for the first quarter of 1996 was $9.1 million, a
decrease of $3.9 million or 30 percent from 1995. Gain on sale of
subsidiaries and investments includes the sale of a cellular property.
Equity earnings from cellular and telephone investments increased
$.9 million, diversified company income increased $.4 million and
undistributed corporate support costs decreased $.3 million in the
first quarter of 1996 compared to the same period in 1995. Other expense
in 1995 included $.8 million in costs relating to Holdings' offer to
purchase the minority interest in the Company.
Acquisitions
____________
See Part II, Item 7. "Management's Discussion and Analysis of Financial
Condition and Results of Operations" under "Acquisitions" and Notes 14 and
15 to the Consolidated Financial Statements included in the Company's Annual
Report on Form 10-K for the year ended December 31, 1995, for information
about acquisitions.
-9-
<PAGE>
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Liquidity and Capital Resources
_______________________________
During the three months ended March 31, 1996, construction expenditures
amounted to $19.9 million. These expenditures pertained mainly to network
upgrades and internal growth of the Company's operations. The
construction expenditures were funded primarily with cash from operations.
In 1996, total construction expenditures estimated at $114.2 million are
expected to be funded primarily through cash from operations. Cash from
operations in the first quarter of 1996 was comparable with amounts for the
same period in 1995. Lower operating cash, relating mainly to the sale of
Alascom, was offset by higher interstate access receipts from the National
Exchange Carrier Association (NECA), including $10.1 million attributable to
certain revenue requirement issues. Due to an FCC ruling, the Company did
not record the $10.1 million receipt as income and expects that this
amount will be refunded or used to offset future cash flow from NECA.
The Company has access to funds through its $300 million revolving credit
agreement which terminates in November 1999. At March 31, 1996, no borrowings
were outstanding under this agreement. The revolving credit agreement also
serves as backup for a $100 million commercial paper program, under which
$50 million was outstanding at March 31, 1996. The Company had $97
million outstanding under other available banking arrangements at March 31,
1996. Short-term borrowings from other available banking arrangements of $25
million and commercial paper of $50 million have been classified as long-term
debt based on management's intent and the Company's ability to support this
debt on a long-term basis. In January 1996, the Company established a $200
million Series C Medium-term Note program, which will be used primarily to
fund future acquisitions and to repay some of the short-term debt outstanding
at March 31, 1996. At March 31, 1996, the Company had approval from the
Rural Telephone Bank to borrow $17.6 million in additional Rural
Electrification Administration debt for certain construction projects.
The Company has an agreement that allows temporary cash advances to or from
its parent, PacifiCorp Holdings, Inc. (Holdings). Interest rates on advances
from Holdings are based on Holding's cost of short-term funds plus 3/8
percent. Interest rates on advances to Holdings are based on Holding's cost
of short-term funds. At March 31, 1996, $27.5 million was due from Holdings
for amounts to be paid to dissenters relating to the minority buy-out. (See
Note 2 to the Consolidated Financial Statements included in the Company's
Annual Report on Form 10-K for the year ended December 31, 1995
for more information about this note.)
The Company has definitive agreements with US WEST Communications, Inc.
and GTE North Incorporated to purchase local exchange telephone properties
in Minnesota and Michigan, respectively. Both acquisitions are subject
to regulatory approval. The Company expects to fund these acquisitions
through the issuance of external debt and internally generated funds.
Any temporary cash or liquidity requirements during 1996 are expected to
be met through utilization of funds available under the revolving credit
agreement or temporary advances from Holdings. Long-term liquidity
requirements are expected to be met through utilization of funds available
under the revolving credit agreement or the Series C Medium-term Note
program. Cash needed to pay dissenters'rights will be provided by Holdings.
-10-
<PAGE>
PART II OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
12 Statements re Computation of Ratios
27 Financial Data Schedule (filed electronically only)
(b) Reports on Form 8-K
None
-11-
<PAGE>
SIGNATURES
__________
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
Pacific Telecom, Inc.
____________________________
(Registrant)
Date: May 8, 1996 /s/James H. Huesgen
____________________________
James H. Huesgen
Executive Vice President and
Chief Financial Officer
-12-
<PAGE>
<TABLE>
EXHIBIT 12
Pacific Telecom, Inc.
Computation of Ratio of Earnings to Fixed Charges
(Dollar amounts in millions)
<CAPTION>
Three
Months
Ended Year Ended December 31,
March 31, __________________________________
1996 1995 1994 1993 1992 1991
_________ ____ ____ ____ ____ ____
<S> <C> <C> <C> <C> <C> <C>
Earnings, as defined*:
Income from continuing operations
before income taxes $26.2 $186.6 $122.2 $ 82.9 $ 99.8 $120.4
Add:
Fixed charges 11.8 54.5 48.6 59.5 63.2 67.7
Equity losses of less than 50%
owned persons - - - - 0.9 0.5
Minority interest 0.4 1.3 1.0 0.6 0.1 2.0
_____ _____ _____ _____ _____ _____
Total earnings $38.4 $242.4 $171.8 $143.0 $164.0 $190.6
_____ _____ _____ _____ _____ _____
_____ _____ _____ _____ _____ _____
Fixed charges:
Interest $10.0 $42.3 $34.7 $44.3 $52.1 $55.0
Interest portion of
rental expense 1.8 12.2 13.9 15.2 11.1 12.7
____ ____ ____ ____ ____ ____
Total fixed charges $11.8 $54.5 $48.6 $59.5 $63.2 $67.7
____ ____ ____ ____ ____ ____
____ ____ ____ ____ ____ ____
Ratio of earnings to fixed charges 3.3 4.4 3.5 2.4 2.6 2.8
____ ____ ____ ____ ____ ____
____ ____ ____ ____ ____ ____
</TABLE>
[FN]
* For the purpose of computing these ratios, "earnings" represents the
aggregate of (a) income from continuing operations before income taxes,
(b) fixed charges, (c)equity losses of less than 50% owned persons and
(d) minority interest. Equity losses of less than 50% owned persons are
added to income from continuing operations before income taxes since the
Company does not guarantee the debt of such persons. "Fixed Charges"
consist of interest charges and an estimated amount representing the
interest portion of rental expense.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FIRST
QUARTER FORM 10-Q AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 902917
<OTHER-PROPERTY-AND-INVEST> 142255
<TOTAL-CURRENT-ASSETS> 213068
<TOTAL-DEFERRED-CHARGES> 16041
<OTHER-ASSETS> 375529
<TOTAL-ASSETS> 1649810
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 225943
<RETAINED-EARNINGS> 532421
<TOTAL-COMMON-STOCKHOLDERS-EQ> 758364
0
0
<LONG-TERM-DEBT-NET> 384053
<SHORT-TERM-NOTES> 72000
<LONG-TERM-NOTES-PAYABLE> 25000
<COMMERCIAL-PAPER-OBLIGATIONS> 50000
<LONG-TERM-DEBT-CURRENT-PORT> 5567
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 354826
<TOT-CAPITALIZATION-AND-LIAB> 1649810
<GROSS-OPERATING-REVENUE> 124430
<INCOME-TAX-EXPENSE> 10196
<OTHER-OPERATING-EXPENSES> 89075
<TOTAL-OPERATING-EXPENSES> 99271
<OPERATING-INCOME-LOSS> 25159
<OTHER-INCOME-NET> 911
<INCOME-BEFORE-INTEREST-EXPEN> 26070
<TOTAL-INTEREST-EXPENSE> 10053
<NET-INCOME> 16017
0
<EARNINGS-AVAILABLE-FOR-COMM> 16017
<COMMON-STOCK-DIVIDENDS> 13066
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 52277
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
