-----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, KQtfQLR7kuuA7kl5piSK9fyTVjvZEwwXtS2xwo5E9akhAkAhrKwkFRJw4nUl/Lkc msfU7EVWgyrhEFrWU0xtWQ== 0000889697-99-000001.txt : 19990112 0000889697-99-000001.hdr.sgml : 19990112 ACCESSION NUMBER: 0000889697-99-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19981130 FILED AS OF DATE: 19990111 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEOGEN CORP CENTRAL INDEX KEY: 0000711377 STANDARD INDUSTRIAL CLASSIFICATION: IN VITRO & IN VIVO DIAGNOSTIC SUBSTANCES [2835] IRS NUMBER: 382367843 STATE OF INCORPORATION: MI FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-17988 FILM NUMBER: 99504248 BUSINESS ADDRESS: STREET 1: 620 LESHER PLACE CITY: LANSING STATE: MI ZIP: 48912 BUSINESS PHONE: 5173729200 MAIL ADDRESS: STREET 2: 620 LESHER PLACE CITY: LANSING STATE: MI ZIP: 48912 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended November 30, 1998 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the Transition Period From _______________ to _______________ Commission file number 0-17988 NEOGEN CORPORATION (Exact name of Registrant as specified in its charter) Michigan 38-2367843 (State or other jurisdiction of (I.R.S. Employer corporation or organization) Identification No.) 620 Lesher Place Lansing, Michigan 48912 (517) 372-9200 (Address of principal executive offices) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the 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 As of January 1, 1999, there were 6,058,279 outstanding shares of Common Stock. INDEX NEOGEN CORPORATION AND SUBSIDIARIES PART I. FINANCIAL INFORMATION Item 1. Interim Financial Statements (unaudited) Consolidated balance sheets - November 30, 1998 and May 31, 1998. Consolidated statements of operations - Three months ended November 30, 1998 and 1997; six months ended November 30, 1998 and 1997. Consolidated statements of stockholders' equity - Six months ended November 30, 1998 and 1997. Consolidated statements of cash flows - Six months ended November 30, 1998 and 1997. Notes to consolidated financial statements - November 30, 1998. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. PART II. OTHER INFORMATION Item 1. Legal Proceedings Item 2. Changes in Securities Item 3. Defaults upon Senior Securities Item 4. Submission of Matters to a Vote of Security Holders Item 5. Other information Item 6. Exhibits and Reports on Form 8-K SIGNATURES PART I. FINANCIAL INFORMATION ITEM 1. Interim Financial Statements CONSOLIDATED BALANCE SHEETS (UNAUDITED) NEOGEN CORPORATION AND SUBSIDIARIES
November 30 May 31 1998 1998 ----------- ------------ ASSETS CURRENT ASSETS Cash and equivalents $ 884,756 $ 719,877 Marketable securities 9,383,251 9,868,862 Net accounts receivable 3,466,462 3,088,858 Inventories - notes C and F 5,255,026 4,474,030 Other current assets 580,350 441,319 ----------- ----------- TOTAL CURRENT ASSETS 19,569,845 18,592,946 NET PROPERTY AND EQUIPMENT 2,035,905 1,885,051 INTANGIBLE AND OTHER ASSETS Goodwill, net of accumulated amortization 3,902,536 4,023,235 Other assets, net of accumulated amortization - note C 1,117,357 911,410 ----------- ----------- $26,625,643 $25,412,642 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Notes payable and current maturities of long-term notes payable $ 48,672 $ 48,672 Accounts payable 769,200 578,814 Accrued compensation and benefits 625,560 569,121 Other accrued liabilities 350,896 203,895 ----------- ----------- TOTAL CURRENT LIABILITIES 1,794,328 1,400,502 LONG-TERM NOTES PAYABLE 150,056 174,392 OTHER LONG-TERM LIABILITIES 228,412 228,411 STOCKHOLDERS' EQUITY - (NOTE D) Common stock: Par value $.16 per share, 10,000,000 shares authorized, 6,137,179 shares issued at November 30, 1998; 6,208,179 shares issued at May 31, 1998 981,949 993,309 Additional paid in capital 23,641,061 24,269,549 Retained-earnings deficit (170,163) (1,653,521) ----------- ----------- 24,452,847 23,609,337 ----------- ----------- $26,625,643 $25,412,642 =========== =========== See notes to consolidated financial statements
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) NEOGEN CORPORATION AND SUBSIDIARIES
Three Months Ended Six Months Ended November 30 November 30 1998 1997 1998 1997 ----------------------- ------------------------ REVENUES Sales $5,920,765 $4,627,152 $11,637,320 $9,054,234 EXPENSES Cost of goods sold 2,611,486 1,800,812 4,827,871 3,743,206 Sales and marketing 1,275,073 1,228,836 2,728,473 2,396,404 General and administrative 841,704 723,241 1,721,223 1,309,419 Research and development 423,699 360,439 821,938 654,700 ---------- ---------- ----------- ---------- 5,151,962 4,113,328 10,099,505 8,103,729 ---------- ---------- ----------- ---------- INCOME FROM OPERATIONS 768,803 513,824 1,537,815 950,505 OTHER INCOME (EXPENSE) Interest income 118,609 150,438 251,146 316,060 Interest expense (4,127) (6,267) (8,605) (12,721) Other 165,252 80,103 168,502 134,549 ---------- ---------- ----------- ---------- 279,734 224,274 411,043 437,888 ---------- ---------- ----------- ---------- INCOME BEFORE INCOME TAXES 1,048,537 738,098 1,948,858 1,388,393 INCOME TAXES 382,200 49,400 465,500 69,100 ---------- ---------- ----------- ---------- NET INCOME $ 666,337 $ 688,698 $ 1,483,358 $1,319,293 ========== ========== =========== ========== BASIC EARNINGS PER SHARE (NOTE B) $ 0.11 $ 0.11 $ 0.24 $ 0.21 ========== ========== =========== ========== DILUTED EARNINGS PER SHARE (NOTE B) $ 0.11 $ 0.11 $ 0.24 $ 0.21 ========== ========== =========== ========== See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) NEOGEN CORPORATION AND SUBSIDIARIES
Common Stock ---------------------- Additional Retained- Number Paid-In Earnings of Shares Amount Capital Deficit ---------- --------- ----------- ------------ Balance at June 1, 1998 6,208,179 $993,309 $24,269,549 $(1,653,521) Exercise of options 35,000 5,600 79,476 Repurchase of shares - note D (106,000) (16,960) (707,964) Net income for the six months ended November 30,1998 1,483,358 --------- -------- ----------- ----------- Balance at November 30, 1998 6,137,179 $981,949 $23,641,061 $ (170,163) ========= ======== =========== =========== Balance at June 1, 1997 6,110,608 $977,697 $23,937,397 $(3,901,894) Exercise of warrants 471 76 2,195 Exercise of options 84,500 13,520 293,846 Net income for the six months ended November 30,1997 1,319,293 --------- -------- ----------- ----------- Balance at November 30, 1997 6,195,579 $991,293 $24,233,438 $(2,582,601) ========= ======== =========== =========== See notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) NEOGEN CORPORATION AND SUBSIDIARIES
Six Months Ended November 30 1998 1997 ---------------------------- OPERATING ACTIVITIES: Net income $ 1,483,358 $ 1,319,293 Adjustments to reconcile net income to net cash provided from (used in) operating activities: Depreciation and amortization 444,776 329,071 Changes in operating assets and liabilities: Accounts receivable (377,604) (573,139) Inventories (380,996) (480,532) Other current assets (139,031) (164,556) Accounts payable 190,386 (53,890) Other accrued expenses 203,440 (14,229) ------------ ------------ NET CASH PROVIDED FROM OPERATING ACTIVITIES 1,424,329 362,018 INVESTING ACTIVITIES: Purchases of property and equipment and other assets (480,877) (410,362) Aquisitions - note C (600,000) (1,398,632) Purchases of marketable securities (15,487,554) (10,354,137) Proceeds from sale of marketable securities 15,973,165 11,431,818 ------------ ------------ NET CASH USED IN INVESTING ACTIVITIES (595,266) (731,313) FINANCING ACTIVITIES: Payments on long-term borrowings (24,336) (35,575) Net payments for repurchase of common stock - note D (724,927) 0 Net proceeds from issuance of common stock 85,079 309,637 ------------ ------------ NET CASH PROVIDED FROM (USED IN) FINANCING ACTIVITIES (664,184) 274,062 ------------ ------------ INCREASE(DECREASE) IN CASH 164,879 (95,233) Cash at beginning of period 719,877 718,864 ------------ ------------ CASH AT END OF PERIOD $ 884,756 $ 623,631 ============ ============ See notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) NEOGEN CORPORATION AND SUBSIDIARIES NOTE A - BASIS OF PRESENTATION The accompanying unaudited condensed financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The results of operations for the six months ended November 30, 1998 are not necessarily indicative of the results to be expected for the fiscal year ending May 31, 1999. For more complete financial information, these consolidated financial statements should be read in conjunction with the May 31, 1998 audited consolidated financial statements and the notes thereto included in the Company's annual report on Form 10-KSB for the year ended May 31, 1998. NOTE B - EARNINGS PER SHARE During the year ended May 31, 1998, the Company adopted Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings per Share". The following table presents the earnings per share calculations in conformance with SFAS No. 128.
Three Months Ended Six Months Ended November 30 November 30 1998 1997 1998 1997 ---- ---- ---- ---- Numerator for Basic and Diluted Earnings Per Share Net Income $ 666,337 $ 688,698 $1,483,358 $1,319,293 ========== ========== ========== ========== Denominator Denominator for basic earnings per share- Weighted average shares 6,158,866 6,175,757 6,189,838 6,148,064 Effect of Dilutive Securities Stock options and warrants 33,285 262,938 42,401 226,585 --------- ------- ---------- ---------- Denominator for diluted earnings per share - adjusted weighted average shares and assumed conversions 6,192,151 6,438,695 6,232,239 6,374,649 ========= ========= ========== ========== Basic Earnings Per Share $ 0.11 $ 0.11 $ 0.24 $ 0.21 ===== ===== ===== ===== Diluted Earnings Per Share $ 0.11 $ 0.11 $ 0.24 $ 0.21 ===== ===== ===== =====
NOTE C - ACQUISITIONS In August 1998, the Company purchased certain inventory and technology from BioPort Corporation of Lansing, Michigan. The purchase price consisted of a single cash payment of $600,000. The Company allocated $400,000 of the purchase price to finished goods and bulk toxoid inventories of Type B equine botulism vaccine ("Bot Tox-B"). The remainder of the purchase price was allocated to other assets and consisted primarily of Types A, B, and C botulism seed cultures, manufacturing protocols, quality control procedures and USDA license to manufacture Bot Tox-B. NOTE D - STOCK REPURCHASE In August, the Company announced that its board of directors had authorized the purchase of up to 250,000 shares of the Company's common stock. As of November 30, 1998, the Company had purchased 106,000 shares in negotiated and open market transactions for a total price, including commissions, of approximately $725,000. As of January 1, 1999 the Company had purchased 184,900 shares at a total price, including commissions, of approximately $1,282,000. Shares purchased under this buy-back program will be retired and used to satisfy future issuance of common stock upon the exercise of outstanding stock options and warrants. NOTE E - COMPREHENSIVE INCOME Effective June 1, 1998, the Company adopted the Financial Accounting Standards Board Statement of Financial Accounting Standards No. 130, Reporting Comprehensive Income. Adoption of this statement did not have any material effect on the financial statements of the Company. NOTE F - INVENTORIES Inventories are stated at the lower of cost, determined on the first-in, first-out method, or market. The components of inventories are as follows:
November 30 May 31 1998 1998 ---------- ---------- Raw Material $1,733,009 $2,003,124 Work-In-Process 826,018 837,679 Finished Goods 2,695,999 1,633,227 ---------- ---------- $5,255,026 $4,474,030 ========== ==========
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. Three Months Ended November 30, 1998 Compared to Three Months Ended November 30, 1997. Total sales for the quarter ended November 30, 1998 increased $1,294,000, or 28%, compared to the same quarter in 1997. Sales of products dedicated to animal safety increased $1,023,000, or 50%, and sales of food safety diagnostic products were up $211,000, or 9%. Miscellaneous other sales increased $60,000. The increase in sales of animal safety products was due to several factors. The acquisition of certain assets of Vetoquinol, U.S.A., which occurred in the prior fiscal year, contributed $353,000 in increased sales during the second quarter compared to the same quarter last year. Sales of products to the professional equine market increased $274,000 primarily as a result of greater international demand for Bot Tox-B, a vaccine to prevent Type B botulism in horses. Sales of specialty needles and syringes used to inject spices and marinades into meat and poultry were $499,000 higher than last year, an increase of more than 300%. Food safety sales were significantly higher in two areas. Sales of aflatoxin test kits increased 178,000, or 44%. Hot, dry growing conditions during the summer contributed to growth of molds that produce aflatoxin, a known carcinogen. Accordingly, testing for this harmful residue by food and animal feed producers increased. E. coli O157:H7 test kits sales also increased in the second quarter by $142,000 or 56% due to greater domestic and international demand from meat processors. Cost of goods sold increased significantly in the second quarter partially due to the increase in overall product sales. In addition, the significant increases in sales of Bot Tox-B and specialty needles and syringes contributed to the higher cost of goods sold since these product lines carry proportionately higher material costs that most other Company products. Sales and marketing expenses increased only $46,000 or 4% in the second quarter. The increase was primarily due to higher salaries, fringe and travel costs. The $118,463 increase in general and administrative expenses was the result of higher legal and professional fees compared to the same quarter last year. A more detailed discussion of legal expenses is included later in this Form 10-Q. Research and development expenses were up $63,260, or 18%, in the second quarter due principally to increased staffing levels. Management believes research and development is critical to the Company's future and continues to expand efforts in terms of ongoing research projects pertaining to food and animal safety products. Second quarter research and development expenses were 7% of total sales compared to the Company's annual budget of 8%. Other income increased by $56,000 in the second quarter. Interest income was $31,000 lower due exclusively to lower cash balances available to invest in marketable securities. However, the Company's share of royalties paid to an affiliated partnership was $85,000 higher in the second quarter than the prior year. Neogen's effective federal tax rate has been insignificant because the Company has had net operating loss carry forwards ("NOL's") available to offset taxable income. During the first quarter the Company utilized its remaining NOL's. As a result, the Company's effective federal tax rate increased significantly in the second quarter to 36.5% compared to 6.7% in the same quarter last year. The higher income taxes completely offset the Company's increase in pre-tax profit, resulting in the same earnings per share as the prior year. Six Months Ended November 30, 1998 Compared to Six Months Ended November 30, 1997. Total sales for the six months ended November 30, 1998 were $2,583,000, or 29%, higher than the same period in 1997. Animal safety product sales increased $1,788,000, or 47%, while sales of food safety products were up $685,000, or 15%. All other sales increased $110,000. The increase in animal safety sales is attributable to the following factors: sales pertaining to prior year acquisitions of certain assets of W.J. Bartus, Inc. and Vetoquinol, U.S.A. accounted for $966,000 of increased sales in 1998 compared to 1997; sales of the Company's vaccine to prevent Type B botulism in horses increased $284,000 compared to last year; and sales of specialty needles and syringes used to inject spices and marinades into meat and poultry were $562,000 higher. The increase in sales of food safety products was primarily due to increases in sales in two areas. Large sections of the southern United States suffered from hot, dry weather conditions during the summer months, which promoted mold growth in corn and other commodity crops. Sales of test kits to detect aflatoxin, a harmful residue from molds that proliferate in hot, dry weather conditions, increased $479,000, or 63%, during the first six months. Although testing for aflatoxin will likely continue to run higher than the prior year, management does not believe testing will continue at the same levels as experienced in the first two quarters. Sales of diagnostic tests to detect microorganisms such as E. coli O157:H7 and salmonella, also increased in the first six months with sales up $397,000 compared to last year. The sales increases in these two areas were partially offset by a decline of approximately $247,000, or 15%, in sales of diagnostic test kits to detect vomitoxin. Sales of aflatoxin, vomitoxin and other natural toxin test kits are affected by the uncertainties of weather which impacts growing conditions differently each year. Cost of goods sold increased $1,085,000 compared to the same period last year as a direct result of the overall increase in product sales. Expressed as a percent of sales, cost of goods sold was 41% in 1998, the same percentage as 1997. Sales and marketing expenses increased $332,000, or 14%, in the first six months compared to last year. Virtually all sales and marketing expense categories were higher than the prior year including salaries, fringe, travel, royalties, commissions, trade shows and technical service. The Company is expanding its sales activities both domestically and internationally to gain wider distribution of its products dedicated to food and animal safety. The $412,000 increase in general and administrative expense is due to two factors. Increases in sales volume and overall business activity resulted in a need for additional administrative staff. The increase in staff, along with higher accruals for bonuses due to improved operating performance, resulted in $157,000 of higher personnel related expense in the first six months. In addition, legal and professional fees increased $268,000 compared to the same period last year. Management believes that the Company is not involved in any material adverse legal proceedings. In November, Neogen announced that it had won a lawsuit against Arthur J. and Arthur M. Trickey involving company trademarks. Although damages awarded to Neogen were minor, final resolution puts a definitive end to legal expenses for this lawsuit which amounted to approximately $130,000 during the first six months of the current fiscal year. Neogen is a party in other lawsuits as discussed in Item 3, Legal Proceedings, in the Company's Form 10-KSB for the year ended May 31, 1998. Management intends to vigorously pursue this litigation and cannot predict the outcome of these lawsuits. Furthermore, the Company has no way to predict the level of expenses that may be incurred in fiscal year 1999 in pursuing this litigation. As a result of increased expenses for additional research staff compared to the prior year, research expenses were up $167,000 during the first six months. Other income declined slightly for the six months ended November 30, 1998 compared to last year. Lower interest income was mostly offset by the Company's higher share of royalties paid to an affiliated partnership. Income taxes for the six-month period ended November 30, 1998 were substantially higher than the same period last year. The Company fully utilized its remaining NOL's during its first quarter resulting in a significant increase in effective tax rate for the first six months compared to last year. The company expects its effective tax rate to run approximately of 36% going forward. Financial Condition and Liquidity At November 30, 1998, the Company had $10,268,000 in cash and marketable securities, working capital of $17,776,000 and stockholders' equity of $24,453,000. In addition, the Company has bank lines of credit totaling $10,000,000 with nothing borrowed against these lines as of November 30, 1998. Cash and marketable securities decreased $321,000 during the first six months. The aggregate of the acquisition of certain assets of BioPort Corporation for $600,000, the use of $725,000 for the purchase of 106,000 shares of the Company's common stock (see Notes C and D of the Notes to Unaudited Consolidated Financial Statements) and $481,000 expended for property, equipment and other assets exceeded cash provided from operations. Accounts receivable were $378,000 higher at November 30, 1998 than at May 31 due primarily to significant shipments of food and animal safety products during the last 15 days of the second quarter. Inventories increased $781,000 at November 30, 1998 compared to May 31. Of this amount, $400,000 was due to inventories purchased from BioPort Corporation. The remaining increase was due to higher production levels of veterinary instruments, along with an increase in professional equine and food safety finished good products in anticipation of future increases in sales volume. The increase in other non-current assets at November 30, 1998 compared to May 31, 1998 was due to the acquisition of certain assets of BioPort Corporation. Accounts payable increased $190,000 between May 31 and November 30 due primarily to the timing of month-end cutoffs and scheduled payment dates for trade payables and because of greater payables associated with higher levels of inventory. Accrued expenses were $203,000 higher at November 30 as a result of increases in accruals for a number of areas including bonuses, commissions, royalties and payroll taxes. The Company did not borrow any additional funds during the first six months and made scheduled payments totaling $24,000 on long-term debt. At November 30, 1998, the Company had no material commitments for capital expenditures. Inflation and changing prices are not expected to have a material effect on the Company's operations. Neogen has been profitable for 22 of its last 23 quarters and has generated positive cash flows from operations during this period. Management believes that the Company's existing cash and marketable securities at November 30, 1998, along with its available bank lines of credit and cash expected to be generated from future operations, will be sufficient to fund activities for the foreseeable future. However, existing cash and marketable securities may not be sufficient to meet the Company's cash requirements to commercialize products currently under development or its plans to acquire additional technology and products that fit within the Company's mission statement. Accordingly, the Company may be required to issue equity securities or enter into other financing arrangements for a portion of the Company's future capital needs. Year 2000 The Company believes that its financial and manufacturing systems are year 2000 compliant with the exception of the financial software used at its Ideal Instruments subsidiary. The Company has purchased a software tool and scheduled an outside programmer to implement software changes by February 1, 1999 at the Ideal Instruments subsidiary to ensure year 2000 compliance. The Company does not expect implementation of these changes to have a material impact on its results of operation. The Company's operations with respect to the year 2000 may also be affected by other entities with whom it transacts business. The Company is currently unable to determine the potential impact, if any, that could result from such entities' failure to adequately address this issue. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibit Index Exhibit 4 - Instruments defining the rights of security holders - incorporated by reference from Exhibit 3 (a) (2) of the Second Amendment to the Form S-18 Registration Statement filed on August 22, 1989. Exhibit 27 - Financial Data Schedule (b) Reports on Form 8-K Filed in Quarterly Period Ended November 30, 1998. The Company did not file any reports on Form 8-K in the quarterly period ended November 30, 1998. 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. NEOGEN CORPORATION January 11, 1999 /s/ James L. Herbert Date -------------------- James L. Herbert President January 11, 1999 /s/ Lon M. Bohannon Date -------------------- Lon M. Bohannon Vice President - Chief Financial Officer EXHIBIT INDEX EXHIBIT NO. DESCRIPTION 27 FINANCIAL DATA SCHEDULE EX-27 2 ART. 5 FDS
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE NEOGEN CORPORATION FORM 10-Q FOR THE QUARTER ENDED NOVEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FORM 10-Q 1 6-MOS MAY-31-1999 JUN-01-1998 NOV-30-1998 884,756 9,383,251 3,711,382 244,920 5,255,026 19,569,845 5,713,140 3,677,235 26,625,643 1,794,328 0 0 0 981,949 23,470,898 26,625,643 11,637,320 11,637,320 4,827,871 10,099,505 (419,648) 0 8,605 1,948,858 465,500 1,483,358 0 0 0 1,483,358 0.24 0.24
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