-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TkIVLTUSVSSJ/bkv+y7zHyoSa9g/F8EY2scAvkseoDmwCgbkE1iBnZ+KE13xBd2X mINfMVXXXC5QCHtLLCkK5g== 0000950144-97-009292.txt : 19970815 0000950144-97-009292.hdr.sgml : 19970815 ACCESSION NUMBER: 0000950144-97-009292 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970814 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUMMIT HOLDING SOUTHEAST INC CENTRAL INDEX KEY: 0001027287 STANDARD INDUSTRIAL CLASSIFICATION: INSURANCE AGENTS BROKERS & SERVICES [6411] IRS NUMBER: 593409855 STATE OF INCORPORATION: FL FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-21933 FILM NUMBER: 97663974 BUSINESS ADDRESS: STREET 1: 2310 A-Z PARK ROAD CITY: LAKELAND STATE: FL ZIP: 33801 BUSINESS PHONE: 9416656060 MAIL ADDRESS: STREET 1: 2310 A-Z PARK ROAD CITY: LAKELAND STATE: FL ZIP: 33801 10-Q 1 SUMMIT HOLDING CORPORATION FORM 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (MARK ONE) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 1997 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 0-21933 SUMMIT HOLDING SOUTHEAST, INC. (Exact name of registrant as specified in its charter) Florida 59-3409855 (State or other jurisdiction (I.R.S. Employer Identification Number) of incorporation or organization) 2310 A-Z Park Road, Lakeland, Florida 33801 (Address of prinicipal executive offices) (Zip Code) Registrant's telephone number, including area code: 941-665-6060 Indicate by check mark whether the registrant (1) has filed all documents and 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 last practicable date. Class Outstanding at July 31, 1997 - -------------------------------- ---------------------------- Common Stock, $0.01 Par Value 5,791,100 2 SUMMIT HOLDING SOUTHEAST, INC. AND SUBSIDIARIES FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1997 ----------------------------------- Table of Contents PAGE ---- PART I. FINANCIAL INFORMATION 1 Item 1. Condensed Consolidated Financial Statements 1 Condensed Consolidated Balance Sheets as of June 30, 1997 and March 31, 1997 1 Condensed Consolidated Statements of Income for the three months ended June 30, 1997 and 1996 2 Condensed Consolidated Statements of Cash Flows for the three months ended June 30, 1997 and 1996 3 Notes to Condensed Consolidated Financial Statements 4 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 6 Item 3. Quantitative and Qualitative Disclosures About Market Risk 6 PART II. OTHER INFORMATION 6 Item 4. Submission of Matters to a Vote of Security Holders 7 Item 6. Exhibits and Reports on Form 8-K 7 SIGNATURES INDEX TO EXHIBITS 3 PART 1 - FINANCIAL INFORMATION ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS SUMMIT HOLDING SOUTHEAST, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except shares and per share amounts)
(UNAUDITED) (AUDITED) JUNE 30, MARCH 31, 1997 1997 ---- ---- ASSETS Investments: Fixed maturities $ 223,544 $ 180,075 Equity securities 20,501 18,286 Short-term investments 28,071 14,733 ---------- --------- Total investments 272,116 213,094 Cash and cash equivalents 7,049 3,578 Premiums receivable (net of $2,562 and $2,566 allowance for doubtful accounts, respectively) 42,287 42,397 Reinsurance recoverable 88,194 94,087 Recoverable from Florida Special Disability Trust Fund 20,979 20,979 Accrued investment income 3,525 3,129 Property and equipment, net 1,392 1,452 Goodwill, net 44,182 44,651 Other intangible assets, net 10,548 11,078 Deferred income taxes 14,290 14,869 Other assets 6,859 8,694 ---------- --------- Total assets $ 511,421 $ 458,008 ========== ========= LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities: Loss and loss adjustment expenses $ 348,260 $ 358,744 Note payable 31,900 32,675 Unearned premiums 16,645 5,794 Other policyholders' funds 11,837 16,786 Accounts payable and accrued expenses 7,395 13,093 Deferred revenue 4,053 3,915 Federal income taxes payable 2,594 585 ---------- --------- Total liabilities 422,684 431,592 ---------- --------- Shareholders' Equity: Series A, 4% cumulative preferred stock, $10.00 par; 5,000,000 shares authorized; 1,639,701 shares issued and outstanding 16,397 - Common stock, $.01 par; 20,000,000 shares authorized; 5,791,100 shares issued and outstanding 58 - Additional paid-in capital 57,714 - Retained earnings 12,042 25,899 Net unrealized appreciation of available-for-sale securities, less applicable deferred income taxes 2,526 517 ---------- --------- Total shareholders' equity 88,737 26,416 ---------- --------- Total liabilities and shareholders' equity $ 511,421 $ 458,008 ========== =========
See notes to condensed consolidated financial statements. 1 4 CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) (In thousands, except per share data)
THREE MONTHS ENDED JUNE 30, --------------------------- 1997 1996 ---- ---- REVENUE Premiums earned $ 4,683 $24,790 Net investment income 3,394 3,158 Net realized investment gains (losses) 878 (66) Administrative fees 8,154 9,123 Other income 116 104 ------- ------- Total revenue 17,225 37,109 LOSSES AND EXPENSES Losses and loss adjustment expenses 4,023 17,504 Other underwriting, general and administrative expenses 7,312 14,612 Amortization and depreciation 1,149 1,629 Interest expense 749 936 ------- ------- Total losses and expenses 13,233 34,681 ------- ------- Income from continuing operations before income taxes 3,992 2,428 Income tax expense 1,453 1,154 ------- ------- Income from continuing operations 2,539 1,274 Loss from discontinued operations (net of income tax benefit of $130) -- 252 ------- ------- NET INCOME $ 2,539 $ 1,022 ======= ======= Earnings per common share $ 0.46 ------- Weighted average number of common shares outstanding 5,405 =======
See notes to condensed consolidated financial statements. 2 5 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (In thousands)
THREE MONTHS ENDED JUNE 30, --------------------------- 1997 1996 ---- ---- CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 1,503 $ (6,904) CASH FLOWS FROM INVESTING ACTIVITIES Purchases of investment securities .................................... (87,468) (25,440) Disposal and maturity of investment securities......................... 32,439 32,920 ---------- ---------- Net cash (used in) provided by investing activities.................... (55,029) 7,480 CASH FLOWS FROM FINANCING ACTIVITIES Net proceeds from the issuance of capital stock........................ 57,772 -- Payments on note payable............................................... (775) (2,400) ---------- ---------- Net cash provided by (used in) financing activities.................... 56,997 (2,400) ---------- ---------- Net increase (decrease) in cash and cash equivalents................... 3,471 (1,824) Cash and cash equivalents at beginning of period....................... 3,578 7,427 ---------- ---------- Cash and cash equivalents at end of period............................. $ 7,049 $ 5,603 ========== ==========
See notes to condensed consolidated financial statements. 3 6 SUMMIT HOLDING SOUTHEAST, INC. AND SUBSIDIARIES NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS JUNE 30, 1997 NOTE 1 - BASIS OF PRESENTATION ORGANIZATION Summit Holding Southeast, Inc. ("Summit") is the holding company for Bridgefield Employers Insurance Company ("Bridgefield"), the successor, as of May 28, 1997, to Employers Self Insurers Fund ("ESIF"), and for Summit Holding Corporation ("SHC"). On May 28, 1997, ESIF completed a conversion from a group self-insurance fund to a stock property and casualty insurance company. Concurrent with this conversion, ESIF's name was changed to Bridgefield, and the new holding company, Summit, issued (a) 1.64 million shares of its Series A preferred stock to the former policyholders or members of ESIF in exchange for the extinguishment of the membership interests of such policyholders in ESIF including the elimination of the assessability feature of the membership interests, and (b) 5.79 million shares of its common stock to subscribing former policyholders or members of ESIF, certain members of management, and the public in a subscription offering and subsequent public offerings. At the same time, and in connection with a recapitalization to simplify Summit's corporate structure, all of the capital stock of SHC, which had been owned by ESIF and one of its subsidiaries prior to the conversion, was acquired by Summit, and SHC also became a wholly owned subsidiary of Summit. Also, as part of the recapitalization, SHC's ownership of Bridgefield Casualty Insurance Company ("Bridgefield Casualty") was transferred to Bridgefield. The conversion and recapitalization transactions described above are considered to be similar to pooling of interests transactions. The historical cost basis accounting of the predecessor companies has been retained, and the Company's financial statements have been presented using pooling of interests basis accounting. The conversion and recapitalization transactions had no impact upon previously reported net income of the consolidated entities. The terms and details of these transactions, and the preferred stock and common stock issued by Summit in connection therewith, are more fully described in Summit's Registration Statement on Form S-1 (No. 333-16499). Subsequent to the conversion and recapitalization, Summit's insurance subsidiaries, Bridgefield and Bridgefield Casualty (the "insurance subsidiaries"), will continue to underwrite and assume the underwriting risks with respect to workers' compensation insurance policies for Florida employers, and Summit's administrative subsidiaries (SHC and subsidiaries) (the "administrative subsidiaries") will continue to provide administrative services for the insurance subsidiaries and for four unaffiliated self-insurance funds. In the accompanying notes to condensed consolidated financial statements, the "Company" refers to Summit and its consolidated subsidiaries. BASIS OF FINANCIAL REPORTING The accompanying condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. Accordingly, certain information and note disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. In the opinion of the Company's management, all adjustments (consisting solely of normal recurring adjustments and certain reclassifications) necessary for a fair presentation in the accompanying condensed consolidated financial statements have been made. The information included in this Form 10-Q should be read in conjunction with Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations, and the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1997. The preparation of financial statements requires management to make estimates and assumptions that affect the amounts reported in the accompanying condensed consolidated financial statements and notes thereto. Actual results may differ from these estimates, and 4 7 interim results reflected in the accompanying financial statements are not necessarily indicative of results for a full year. RECLASSIFICATIONS Certain amounts in the accompanying audited consolidated balance sheet as of March 31,1997 have been reclassified from that reported in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1997 in order to better conform with the presentation in the accompanying unaudited condensed consolidated balance sheet as of June 30, 1997. NOTE 2 - REINSURANCE Effective April 1, 1997, Bridgefield entered into quota share reinsurance agreements, in addition to existing excess reinsurance agreements, with American Re-Insurance Company, St. Paul Fire and Marine Insurance, Constitution Reinsurance Corp., and Transatlantic Reinsurance Co. Accordingly, as of the beginning of the fiscal quarter ended June 30, 1997, Bridgefield ceded an aggregate of 75% of the net premiums on workers' compensation policies earned during such period, and the reinsurers, in their respective proportions, have assumed that same percentage of the risks under such policies. The ceding of 75% of the net premiums earned during the quarter ended June 30, 1997 has resulted in a reduction of premium revenue, along with loss and loss adjustment expenses, from that recognized in the corresponding period of the prior year. Also, the Company received a ceding commission relating to these quota share agreements, and such commission is recognized on an earned basis. These quota share agreements do not relieve Bridgefield from its liability under the workers' compensation policies it issues, but they do make the assuming reinsurers liable to Bridgefield for the reinsurance ceded. Therefore, the Company is subject to credit risk with respect to the obligations of its reinsurers involved in these and all other existing reinsurance agreements. Although each of the aforementioned quota share reinsurers are currently rated "A" or better by AM Best Company, any failure on the part of these reinsurers, as well as those involved in the Company's other existing reinsurance arrangements, could have a material adverse effect on the Company's business, financial condition, and results of operations. NOTE 3 - NOTE PAYABLE On May 28, 1997, the date of ESIF's conversion, the Company entered into a new credit facility with a national banking association whereby the then-existing debt, consisting of a bank term loan and availability under a revolving credit agreement, was restructured. Under this new credit facility, the outstanding debt pertaining to the term loan was established at $32.7 million, and the maximum amount available for borrowings under the revolving line of credit was established at $5.0 million. Maturities of the term loan and the schedule of reductions in the amounts available under the revolving line of credit are set forth in Note 14 to the consolidated financial statements contained in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1997. The interest rate applicable to the entire debt package was initially established, and continues, at the prime lending rate plus 1% (9.5% at June 30, 1997). As of and for the quarter ended June 30, 1997, the Company remained current in its obligation under the term loan and had complied with the corresponding covenants described in Note 14 to the consolidated financial statements contained in the aforementioned Annual Report on Form 10-K. Also as of June 30, 1997, there were no borrowings against the revolving line of credit. As collateral for the debt, Summit has pledged all of the issued and outstanding stock of SHC and Bridgefield. NOTE 4 - RESTRICTION ON RETAINED EARNINGS Of the Company's retained earnings as of June 30, 1997 reported in the corresponding accompanying condensed consolidated balance sheet, approximately $72,000 is restricted as such amount represents the aggregate value of the preferred stock preferences, including liquidation and unpaid cumulative dividend preferences, in excess of the stated value of preferred stock reported in such balance sheet. 5 8 NOTE 5 - EARNINGS PER SHARE Earnings per common share is based upon the weighted average number of common shares outstanding, for the period from the date of the completion of the offering through June 30, 1997, adjusted for the effect of the assumed exercise of stock options. The resulting weighted average common shares outstanding were considered to be outstanding for the three months ended June 30, 1997 for purposes of the earnings per share calculation. At March 31, 1997 and prior to ESIF's conversion from a group self-insurance fund to a stock property and casualty company, common shares were inapplicable to ESIF, as the predecessor of the Company. NOTE 6 - CONTINGENCIES The Internal Revenue Service is currently conducting an audit. The Company's management cannot predict the results of the audit, and no assurance can be given that the results of the audit will not have a material adverse effect on the Company's business, financial condition, or results of operations. ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS NET INCOME. Net income for the quarter ended June 30, 1997 was $2.5 million compared to $1.0 million for the corresponding period of the prior year. Excluding the minor effect of discontinued operations, income from operations before income taxes for the quarter ended June 30, 1997 increased $1.6 million, or 65%, from that of the prior year. Significant factors contributing to this increase in the Company's profits are as follows: REVENUE. The Company's revenue is generated principally from three sources: premiums earned on insurance policies written by the insurance subsidiaries, administration fees earned from the management of four unaffiliated self-insurance workers' compensation funds, and investment income generated by the Company's invested assets, including cash and cash equivalent balances. For the quarter ended June 30, 1997, earned premiums declined $20.1 million from the quarter ended June 30, 1996. As is more fully explained in Note 2 to the accompanying condensed consolidated financial statements, approximately $18.4 million of this decline is attributable to the quota share reinsurance agreements entered into by Bridgefield effective April 1, 1997. Another cause of the decline in earned premiums pertains to the Florida legislation regarding managed care workers' compensation. Prior to 1997, and as permitted by the Florida Department of Insurance (the "Florida DOI"), the Company offered a 10% premium credit to those insureds who voluntarily participated in an approved managed care workers' compensation arrangement. Effective January 1, 1997, the Florida legislation required all insured employers to participate in managed care workers' compensation arrangements and, consequently, eliminated the 10% premium credit. In response thereto, and based upon other rate-making factors, the Florida DOI ordered an 11.2% overall workers' compensation insurance rate reduction which applied to new and renewal policies written on and after January 1, 1997. This rate reduction and the simultaneous elimination of the premium credit had the effect of reducing renewal premiums by approximately 4.5%, and thereby resulted in a decline of earned premiums of approximately $1.2 million. The remaining decline in earned premiums of $0.5 million resulted primarily from lost accounts representing the market's preference for non-assessable products, which ESIF was unable to offer prior to its conversion (see Note 1 to the accompanying condensed consolidated financial statements.) The Company is beginning to realize a primary benefit of ESIF's conversion, evidenced by a reduction in the pace of lost accounts for the quarter ended June 30, 1997 from that of the two previous fiscal years. Management's primary business strategy for improving the Company's return on invested capital is to grow the Company's core workers' compensation business. Key aspects of the Company's post-conversion business strategy include: (i) continued use of both self-insurance and indemnity products; (ii) emphasis on profitable underwriting results; (iii) proactive implementation of managed care; (iv) leveraging of administrative service capabilities; and (v) emphasis on excellent customer service. ADMINISTRATIVE FEES. For the quarter ended June 30, 1997, administrative fees decreased by $1.0 million, or 11%, from that of the quarter ended June 30, 1996. This decline results from the premiums of the administrative subsidiaries' unaffiliated clients, upon which the Company's administrative fees are based, being adversely impacted by both the aforementioned 11.2% premium rate reduction and the competitive marketplace. NET INVESTMENT INCOME. Net investment income was $3.4 million for the quarter ended June 30, 1997. This was $0.2 million more than the corresponding quarter of the prior year. LOSS AND LOSS ADJUSTMENT EXPENSES. Loss and loss adjustment expenses for the three months ended June 30, 1997 declined by $13.5 million, or 77%, from that of the quarter ended June 30, 1996. Of this amount, $12.7 million is attributable to Bridgefield's quota share reinsurance agreements discussed in Note 2 to the accompanying condensed consolidated financial statements. OTHER UNDERWRITING, GENERAL, AND ADMINISTRATIVE EXPENSES. For the quarter ended June 30, 1997, other underwriting, general and administrative expenses decreased $7.3 million from the same period of the prior year. As explained in Note 2 to the accompanying condensed consolidated financial statements, Bridgefield received a ceding commission relating to the quota share reinsurance agreements entered into effective April 1, 1997. During the quarter ended June 30, 1997, Bridgefield earned and recognized $7.7 million of such commission, which was recorded as a reduction to other underwriting, general and administrative expenses. LIQUIDITY AND CAPITAL RESOURCES The insurance subsidiaries' primary sources of cash flows are from premiums earned, investment income and the proceeds from the sale or maturity of invested assets. Their primary cash requirements include the purchase of investment securities and the payment of claims, agent commissions, reinsurance premiums and management fees to the administrative subsidiaries. The administrative subsidiaries' primary source of cash flow is service fees generated from the insurance subsidiaries and other unaffiliated clients. The cash requirements of the administrative subsidiaries include primarily the payment of salaries, employee benefits, debt obligations and other operating expenses. The Company's cash and cash equivalents of $7.1 million at June 30, 1997 increased $3.5 million from $3.6 million at March 31, 1997. During the three months ended June 30, 1997, cash of $1.5 million was provided by operations, and $57.8 million of net proceeds were generated through Summit's issuance of its common stock through the subscription and public offerings referenced in Note 1 to the accompanying condensed consolidated financial statements. Of this amount, $55.0 million was used for net purchases of additional investments, and $0.8 million was used to fund the scheduled payments on the Company's note payable. As further explained in Note 3 to the accompanying condensed consolidated financial statements, the Company has a revolving credit agreement with a national banking association under which up to $5.0 million presently may be borrowed at an interest rate equal to the prime lending rate plus 1% (9.5% at June 30, 1997). As of June 30, 1997, there were no borrowings against this revolving line of credit. At June 30, 1997, the Company's shareholders' equity equaled 17.4% of total assets compared to 5.8% at March 31, 1997. As described in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 1997, the insurance subsidiaries are subject to state insurance laws and regulations that limit the amount of dividends or distributions that may be paid by an insurance company to its shareholders. In addition, conditions imposed by the Florida DOI in connection with ESIF's conversion require that all dividends or distributions by the insurance subsidiaries be approved by the Florida DOI in advance. As a consequence of these legal restrictions and other business considerations, the amount of dividends that may be paid by the insurance subsidiaries to Summit may be limited, which may in turn limit the amount of cash available to Summit for servicing its debt and other purposes. Item 3 - Quantitative and Qualitative Disclosures About Market Risk Not Applicable. PART II - OTHER INFORMATION [continue next page here] 6 9 ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS A special meeting of policyholders of Employers Self Insurers Fund was held May 9, 1997, at which time the following matters were brought before and voted upon by the policyholders. 1. Proposal to ratify the Amended Plan of Conversion and Recapitalization of Employers Self Insurers Fund as described in the proxy statement of the Company. For Against Abstain --------------------------------------- 3,551 50 131 ITEM 6 - EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits. The following exhibits are filed herewith: Exhibit No. Description ----------- ----------- 11 Computation of Earnings Per Share 27 Financial Data Schedule (for SEC use only) (b) Reports on the Form 8-K. During the quarter ended June 30, 1997, the Company filed one Current Report on Form 8-K (dated May 21, 1997) filing. It contained: (a) the executed Underwriting Agreement related to the Company's initial public offering. (b) the executed Credit Agreement between the Company and its lenders, for whom First Union National Bank of North Carolina is acting as the lead agent. 7 10 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. Summit Holding Southeast, Inc. Date: August 14, 1997 By: /s/ Russell L. Wall --------------------------- Russell L. Wall, Vice President of Finance, Chief Financial Officer (Principal Financial and Accounting Officer and Duly Authorized Officer) 8 EX-11 2 COMPUTATION OF PER SHARE EARNINGS 1 EXHIBIT 11 COMPUTATION OF NET EARNINGS PER SHARE
Quarter ended June 30, 1997 ------------- Net Income $2,539,039 Preferred Stock Accumulated Dividends (71,877) ---------- Net earnings available to common shareholders $2,467,162 Weighted average number of common shares outstanding during period 5,228,600 Weighted average number of common equivalent shares (treasury stock method) composed of shares issuable upon option exercise 172,614 ---------- Weighted average number of shares used in calculating primary earnings per share 5,401,414 PRIMARY NET EARNINGS PER SHARE $ 0.467 ========== Weighted average number of common equivalent shares (treasury stock method for fully diluted) composed of shares issuable upon option exercise 176,471 ---------- Weighed average number of shares used in calculating fully diluted earnings per share 5,405,071 FULLY DILUTED NET EARNINGS PER SHARE $ 0.456 ==========
Page 1 EX-27 3 FINANCIAL DATA SCHEDULE
7 1,000 3-MOS MAR-31-1997 APR-01-1997 JUN-30-1997 223,544 0 0 20,501 0 0 272,116 7,049 5,163 0 511,421 348,260 16,645 0 11,837 31,900 0 16,397 58 72,282 511,421 4,683 3,394 878 8,270 4,023 0 7,312 3,992 1,453 2,539 0 0 0 2,539 .47 .46 0 0 0 0 0 0 0
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