-----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, TzeP2cC82dIynYxEVqaTzjLTKCHh6LeGlN47I8xHlvEU5aC+VhbxiFAKmiNqbn6Z FP6b3gI/b14P1GuElrcC5g== 0000950133-98-001985.txt : 19980518 0000950133-98-001985.hdr.sgml : 19980518 ACCESSION NUMBER: 0000950133-98-001985 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19980331 FILED AS OF DATE: 19980515 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: YOUTH SERVICES INTERNATIONAL INC CENTRAL INDEX KEY: 0000876726 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-CHILD DAY CARE SERVICES [8351] IRS NUMBER: 521715690 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-23284 FILM NUMBER: 98625851 BUSINESS ADDRESS: STREET 1: 2 PARK CENTER CT STREET 2: STE 200 CITY: OWINGS MILLS STATE: MD ZIP: 21117 BUSINESS PHONE: 4103568600 10-Q 1 YOUTH SERVICES INTERNATIONAL, INC. FORM 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarter Ended Commission File Number March 31, 1998 0-23284 -------------- ------- YOUTH SERVICES INTERNATIONAL, INC. --------------------------------------------------------------- (Exact name of registrant as specified in its charter) Maryland 52-1715690 -------- ---------- (State of Incorporation) (I.R.S. Employer Identification Number) 2 Park Center Court, Suite 200, Owings Mills, Maryland, 21117 ------------------------------------------------------------- (Address of principal executive offices) Registrant's telephone number, including area code: 410-356-8600 ------------ Not Applicable ------------------------------------------------------------- (Former name, former address and former fiscal year if changed since last report) Number of shares of common stock outstanding on March 31, 1998: 10,324,667
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 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 ----- ----- 2 YOUTH SERVICES INTERNATIONAL, INC. INDEX - FORM 10-Q MARCH 31, 1998 PART I - FINANCIAL INFORMATION
PAGE ---- Item 1. Consolidated Financial Statements Consolidated Statements of Operations - For the Three Months Ended March 31, 1998 and 1997 2 Consolidated Balance Sheets - As of March 31, 1998 and December 31, 1997 3 Consolidated Statements of Cash Flows- For the Three Months Ended March 31, 1998 and 1997 5 Notes to Consolidated Financial Statements 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II - OTHER INFORMATION Items 2 through 5 have been omitted since the item is either inapplicable or the answer is negative. Item 6 Exhibits and Reports on Form 8-K 11 Signatures 12
1 3 YOUTH SERVICES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (IN $000'S EXCEPT PER SHARE DATA)
THREE MONTHS ENDED MARCH 31, ------------------------------------------------------- 1998 1997 ----------------------- ------------------------ REVENUES $ 20,848 $ 27,250 PROGRAM EXPENSES: Direct operating 16,631 24,747 Start-up costs 279 - ----------------------- ------------------------ CONTRIBUTION FROM OPERATIONS 3,938 2,503 OTHER OPERATING EXPENSES: Development costs 392 216 General and administrative 1,390 2,160 Loss on sale of behavioral health business - 27,000 ----------------------- ------------------------ INCOME (LOSS) FROM OPERATIONS 2,156 (26,873) INTEREST AND OTHER EXPENSE, net (392) (866) ----------------------- ------------------------ INCOME (LOSS) BEFORE TAXES 1,764 (27,739) INCOME TAX EXPENSE (BENEFIT) 653 (6,380) ----------------------- ------------------------ NET INCOME (LOSS) $ 1,111 $ (21,359) ======================= ======================== EARNINGS (LOSS) PER SHARE: Basic $ 0.11 $ (2.19) ======================= ======================== Diluted $ 0.11 $ (2.19) ======================= ======================== WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 10,286 9,770 ======================= ======================== Diluted 10,563 9,770 ======================= ========================
The accompanying notes are an integral part of these financial statements 2 4 PAGE 1 OF 2 YOUTH SERVICES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN 000'S) ASSETS
MARCH 31, DECEMBER 31, 1998 1997 --------------------------- --------------------------- (unaudited) (audited) CURRENT ASSETS: Cash $ 10,748 $ 7,802 Restricted cash 245 264 Accounts receivable, net 14,720 14,642 Other receivables 1,319 2,330 Proceeds receivable from sale of behavioral health business - 4,500 Prepaid expenses, supplies and other 2,015 1,680 Deferred tax asset 769 769 --------------------------- --------------------------- Total current assets 29,816 31,987 --------------------------- --------------------------- PROPERTY, EQUIPMENT AND IMPROVEMENTS: Land 1,976 1,976 Leasehold improvements 10,274 9,364 Program equipment 2,091 1,913 Buildings 9,842 8,637 Office furniture and equipment 3,351 3,201 Vehicles 1,550 1,481 --------------------------- --------------------------- 29,084 26,572 Accumulated depreciation (6,485) (5,871) --------------------------- --------------------------- Property, equipment and improvements, net 22,599 20,701 --------------------------- --------------------------- OTHER ASSETS: Deferred debt issue costs, net 1,757 1,819 Goodwill, net 2,068 2,165 Deferred tax asset 6,512 6,512 Other assets, net 1,785 1,700 --------------------------- --------------------------- 12,122 12,196 --------------------------- --------------------------- Total assets $ 64,537 $ 64,884 =========================== ===========================
The accompanying notes are an integral part of these financial statements. 3 5 PAGE 2 OF 2 YOUTH SERVICES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (IN 000'S) LIABILITIES AND SHAREHOLDER'S EQUITY
MARCH 31, DECEMBER 31, 1998 1997 --------------------------- --------------------------- (unaudited) (audited) CURRENT LIABILITIES: Accounts payable $ 557 $ 1,193 Accrued expenses 5,957 6,351 Deferred revenue 1,240 1,243 Current portion of long-term obligations 23 228 --------------------------- --------------------------- Total current liabilities 7,777 9,015 CAPITAL LEASE OBLIGATIONS, less current portion 4 5 7% CONVERTIBLE SUBORDINATED DEBENTURES 32,200 32,200 12% SUBORDINATED DEBENTURES, net of unamortized discount - 797 LONG-TERM DEBT, less current portion 60 60 --------------------------- --------------------------- Total liabilities 40,041 42,077 --------------------------- --------------------------- SHAREHOLDERS' EQUITY Common stock, $.01 par value: 70,000,000 shares authorized, 10,324,667 and 10,241,198 issued and outstanding, respectively 103 102 Additional paid-in capital 34,198 33,621 Accumulated deficit (9,805) (10,916) --------------------------- --------------------------- Total shareholders' equity 24,496 22,807 --------------------------- --------------------------- Total liabilities and shareholders' equity $ 64,537 $ 64,884 =========================== ===========================
The accompanying notes are an integral part of these financial statements. 4 6 PAGE 1 OF 2 YOUTH SERVICES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN 000'S)
THREE MONTHS ENDED MARCH 31, ------------------------------------------------------------- 1998 1997 --------------------------- --------------------------- OPERATING ACTIVITIES: Net income (loss) $ 1,111 $ (21,359) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Stock granted as compensation 14 - Depreciation and amortization 886 1,739 Loss on sale of property, equipment and improvements 15 46 Loss on sale of behavioral health business - 27,000 Loss on sale of investments - 225 Deferred income taxes - (6,579) Tax benefit realized due to exercise of nonqualified stock options 108 - Net change in operating assets and liabilities (423) (1,525) --------------------------- --------------------------- Net cash provided by (used in) operating activities 1,711 (453) --------------------------- --------------------------- INVESTING ACTIVITIES: Purchases of property, equipment and improvements (2,576) (1,434) Purchase of investments - (321) Proceeds from sale of property, equipment and improvements 17 725 Cash paid for business acquired, net of cash received - (628) Proceeds from sale of behavioral health business 4,500 - Collections of notes receivable - 31 Proceeds from sale of investments - 316 Other long-term assets (159) 355 --------------------------- --------------------------- Net cash provided by (used in) investing activities 1,782 (956) --------------------------- --------------------------- FINANCING ACTIVITIES: Repayments of short-term borrowings, long-term borrowings and capital lease obligations (1,003) (1,191) Proceeds from issuance of common stock under stock option and stock purchase plans, net 456 2,257 --------------------------- --------------------------- Net cash (used in) provided by financing activities (547) 1,066 --------------------------- --------------------------- NET INCREASE (DECREASE) IN CASH 2,946 (343) CASH, beginning of period 7,802 3,037 --------------------------- --------------------------- CASH, end of period $ 10,748 $ 2,694 =========================== ===========================
The accompanying notes are an integral part of these financial statements. 5 7 PAGE 2 OF 2 YOUTH SERVICES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (IN 000'S)
THREE MONTHS ENDED MARCH 31, ------------------------------------------------------------- 1998 1997 --------------------------- --------------------------- CHANGES IN OPERATING ASSETS AND LIABILITIES, NET OF EFFECTS OF BUSINESS ACQUISITIONS AND DISPOSITIONS: Restricted cash $ 19 $ (10) Accounts receivable (78) (1,333) Other receivables 1,011 1,125 Refundable income taxes - (454) Prepaid expenses, supplies and other (335) 1,275 Deposits (7) (18) Accounts payable (636) 838 Accrued expenses (394) (1,700) Deferred revenue (3) (1,248) --------------------------- --------------------------- Net change in operating assets and liabilities $ (423) $ (1,525) =========================== =========================== SUPPLEMENTAL DISCLOSURE: Cash paid for interest $ 1,127 $ 1,438 =========================== =========================== Cash paid for taxes $ 97 $ 34 =========================== ===========================
The accompanying notes are an integral part of these financial statements. 6 8 YOUTH SERVICES INTERNATIONAL, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. FINANCIAL INFORMATION In management's opinion, the accompanying interim unaudited consolidated financial statements include all adjustments, consisting only of normal, recurring adjustments, necessary for a fair presentation of Youth Services International, Inc.'s ("YSI's" or the "Company's") financial position at March 31, 1998 and the results of its operations for the three months ended March 31, 1998 and 1997 and its cash flows for the three months ended March 31, 1998 and 1997. The accompanying audited consolidated balance sheet as of December 31, 1997 is presented herein as set forth in YSI's Form 10-K for the year ended December 31, 1997, after giving effect to certain reclassifications to conform to current period presentation. The statements herein are presented in accordance with the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in YSI's consolidated financial statements on Form 10-K have been omitted from these statements, as permitted under the applicable rules and regulations. Readers of these statements should refer to the consolidated financial statements and notes thereto as of December 31, 1997 and 1996 and June 30, 1996 and for the periods then ended filed with the Securities and Exchange Commission on Form 10-K. Operating results for the three months ended March 31, 1998 and 1997 are not necessarily indicative of the results that may be expected for a full fiscal year. 2. SALE OF BEHAVIORAL HEALTH BUSINESS In the fourth quarter of 1997, the Company consummated the sale of its behavioral health business, other than its two behavioral health programs in Texas, for $20,400,000 resulting in a net loss on sale of $20,898,000. The Company originally estimated the loss on this sale to be $27,000,000 and recognized a loss of this amount upon the commitment to sell the business during the quarter ended March 31, 1997. Due to its receipt of sale proceeds in excess of its estimate, the Company recognized a gain of $6,102,000 at the sale date. Included in the Consolidated Statement of Operations for the three months ended March 31, 1998 is $1,020,000 of revenues related to the behavioral health facilities sold. 7 9 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS YSI operates programs designed to provide educational, developmental and rehabilitative services to troubled youth who have been adjudicated. As of March 31, 1998, YSI operated 20 residential programs in ten states. Revenues are derived from the Company's operation of its programs pursuant to contracts with governmental entities and management agreements with private operators which are generally not-for-profit entities that contract with governmental entities. Generally, the Company's contracts provide for per diem payments based upon program occupancy. The Company recognizes revenues from its fixed per diem and management contracts when the Company performs the services pursuant to such contracts. One of the Company's significant programs operates under a contract whereby revenues are recognized as reimbursable costs are incurred through a gross maximum price cost reimbursement arrangement. Under this contract, contract revenues are recorded at amounts that are expected to be realized. This contract has certain costs subject to audit and adjustment as determined through negotiations with government representatives. Subsequent adjustments, if any, resulting from the audit process are recorded when known. Program direct operating expenses are principally comprised of salaries and related benefits of personnel, insurance, security expenses, transportation costs, depreciation, meal costs and rent, utilities and other occupancy expenses associated with the operation of the Company's programs at its facilities. Start-up costs are principally comprised of expenses associated with the hiring and training of staff required to obtain licensing prior to admitting students into a new program. Contribution from operations consists of revenues minus program direct operating expenses and start-up costs. Contribution from operations, in general, is lower in the initial stages of a program's development primarily because of start-up costs and other costs incurred during the period prior to the achievement of stable occupancy. Contribution from operations as a percentage of revenue is greater under some of the Company's contracts with unaffiliated, not-for-profit entities because the not-for-profit entities are responsible for certain elements of operating the programs and incur some of the costs. Therefore, in these instances, the Company earns its margin on a lower base of revenues and expenses. Development costs are principally comprised of payroll and travel costs for personnel associated with the Company's efforts to expand into new markets. General and administrative costs are principally comprised of salaries and related benefits of personnel, insurance and rent, utilities and other occupancy expenses associated with the operation of the Company's executive offices and the management of the Company's operations. RECENT DEVELOPMENTS In April 1998, the Company announced the opening of the Elmore Academy in Elmore, Minnesota which has been licensed by the Minnesota Department of Corrections for 150 beds to serve adjudicated youth. In April 1998, the Company signed a letter of intent to acquire the stock of Community Corrections, Inc. (CCI) with the stock of Youth Services International, Inc. CCI is a Texas corporation which operates five residential boot camp facilities in Texas with a total residential capacity of approximately 350 beds and also provides aftercare services to adjudicated juveniles in Georgia. 8 10 RESULTS OF OPERATIONS The following table sets forth selected items from the Company's consolidated financial statements expressed as a percentage of total revenues:
FOR THE THREE MONTHS ENDED MARCH 31, ------------------------------------------------------------- 1998 1997 --------------------------- --------------------------- Revenues 100.0 100.0 Program expenses: Direct operating 79.8 90.8 Start-up costs 1.3 - --------------------------- --------------------------- Contribution from operations 18.9 9.2 Other operating expenses: Development costs 1.9 0.8 General and administrative 6.7 7.9 Loss on sale of behavioral health business - 99.1 --------------------------- --------------------------- Income (loss) from operations 10.3 (98.6) Interest and other expenses, net (1.9) (3.2) --------------------------- --------------------------- Income (loss) before taxes 8.4 (101.8) Income tax expense (benefit) 3.1 (23.4) --------------------------- --------------------------- Net income (loss) 5.3 (78.4) =========================== ===========================
THREE MONTHS ENDED MARCH 31, 1998 COMPARED TO THREE MONTHS ENDED MARCH 31, 1997 Revenues. Revenues decreased $6,402,000, or 23.5%, to $20,848,000 for the three months ended March 31, 1998 from $27,250,000 for the three months ended March 31, 1997. This net decrease resulted primarily from the sale of projects in the behavioral health business in October 1997. Revenues from the businesses that were sold for the three months ended March 31, 1997 were $9,931,000. This decrease was partially offset by $1,020,000 of revenues related to these businesses which were recorded in the three months ended March 31, 1998, the addition of five new juvenile justice programs subsequent to March 31, 1997 which provided revenues of $1,132,000 and the expansion of the juvenile justice programs existing at March 31, 1997 which generated an increase of $1,377,000. The average daily enrollment for all of the Company's programs decreased 18.4% to 1,911 youth for the three months ended March 31, 1998 from 2,343 youth for the three months ended March 31, 1997. The Company reported an occupancy rate of 88.1% for the quarter ended March 31, 1998 compared to 92.6% for the quarter ended March 31, 1997 based on an average daily residential licensed capacity of 2,169 beds for the three months ended March 31, 1998 and 2,531 beds for the three months ended March 31, 1997. The decrease in occupancy percentage is due primarily to the fact that 9 11 some of the five new juvenile justice programs were still in various stages of development where maximum occupancy had not yet been reached as well as a decline in the census at two of the midwest facilities. Program Direct Operating Expenses. Program direct operating expenses decreased $8,116,000, or 32.8%, to $16,631,000 for the three months ended March 31, 1998 from $24,747,000 for the three months ended March 31, 1997. The decrease resulted primarily from the sale of projects in the behavioral health business in October 1997. Program direct operating expenses for these businesses for the three months ended March 31, 1998 were $10,061,000. As a percentage of revenue, program direct operating expenses were 79.8% and 90.8%, thereby generating program contribution margin percentage of 20.2% and 9.2%, for the three months ended March 31, 1998 and 1997, respectively. This improvement between periods is due to certain operating efficiencies and consolidations implemented throughout the Company as well as an overall margin improvement due to the sale of the behavioral health business whose operating margins are substantially less than the juvenile justice business. Salaries and related employee benefits constituted approximately 70.7% of program direct operating expenses for the three months ended March 31, 1998 compared to 70.8% of program direct operating expenses for the three months ended March 31, 1997. Start-up Costs. Start-up costs were $279,000 for the three months ended March 31, 1998 compared to $0 for the three months ended March 31, 1997. All start-up costs in the 1998 period relate to the Elmore Academy and the Chanute Transition Center "de novo" projects. There were no start-up projects during the 1997 period. Contribution from Operations. Contribution from operations, which includes the effects of start-up costs in each period, increased $1,435,000, or 57.3%, for the three months ended March 31, 1998 to $3,938,000 from $2,503,000 for the three months ended March 31, 1997. Contribution from operations increased as a percentage of revenues to 18.9% for the three months ended March 31, 1998 compared to 9.2% for the three months ended March 31, 1997. Development Costs. For the three months ended March 31, 1998, development costs increased $176,000, or 81.5%, to $392,000 from $216,000 for the three months ended March 31, 1997. This increase was primarily due to the Company's focus on growth and the hiring of individuals specifically targeting development activities in new markets. General and Administrative Expenses. For the three months ended March 31, 1998, general and administrative expenses decreased $770,000, or 35.6%, to $1,390,000 from $2,160,000 for the three months ended March 31, 1997. As a percentage of revenues, general and administrative expenses decreased to 6.7% for the three months ended March 31, 1998 from 7.9% for the three months ended March 31, 1997. This decrease is primarily due to the elimination of certain administrative expenses specifically related to the behavioral health business as well as a reduction in professional fees which resulted from the hiring of certain professionals and the renegotiation of other outside arrangements. Net Interest and Other Expense. Net interest and other expense decreased $474,000, or 54.7%, to $392,000 for the three months ended March 31, 1998 from $866,000 for the three months ended March 31, 1997. The decrease was primarily attributable to the repayment of the 12% subordinated debentures in early January 1998, as well as the disposition of the behavioral health business whose liabilities included a significant amount of capital lease obligations. Income Taxes. The provision for income taxes was $653,000, representing an effective tax rate of 37.0% for the three months ended March 31, 1998 as compared to an income tax benefit of $6,380,000, representing an effective tax rate of 23.0% for the three months ended March 31, 1997. The increase in the effective tax benefit rate back to a normal level was primarily attributable to the non-deductibility of a large component of the goodwill in the 1997 period related to the behavioral health business which was included in the $27,000,000 loss on sale of behavioral health business. 10 12 Net Income. Net income was $1,111,000, or $0.11 per share on a basic and diluted basis, for the three months ended March 31, 1998 compared to a net loss of $21,359,000, or $ 2.19 per share on a basic and diluted basis, for the three months ended March 31, 1997. LIQUIDITY AND CAPITAL RESOURCES At March 31, 1998, the Company had $10,748,000 in cash and $22,039,000 of working capital. Net cash provided by operating activities was $1,711,000 for the three months ended March 31, 1998 compared to net cash used in operating activities of $453,000 for the three months ended March 31, 1997. This increase resulted primarily from improved operating earnings and favorable accounts receivable collection experience between years. Net cash provided by investing activities was $1,782,000 for the three months ended March 31, 1998, comprised primarily of $2,576,000 used to fund capital expenditures offset by the proceeds from the sale of the behavioral health business of $4,500,000. Net cash used in financing activities was $547,000 for the three months ended March 31, 1998 comprised primarily of repayments of short-term borrowings and long-term debt of $1,003,000 offset by $456,000 of proceeds from stock option exercises. The Company has a Revolving Line of Credit agreement with a bank for the lesser of $20,000,000 or the sum of 85% of the eligible accounts receivable and 95% of the cash and cash equivalents on deposit with the bank. Amounts drawn under this line of credit bear interest at LIBOR plus 150 basis points and are payable on demand. As of March 31, 1998, the Company had no outstanding balance for this agreement. FORWARD-LOOKING STATEMENTS In addition to historical information, this report contains forward- looking statements. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's analysis only as of the date hereof. The Company undertakes no obligation to publicly revise or update these forward-looking statements to reflect events or circumstances that arise from the date hereof. Readers should carefully review the risk factors described in the documents filed by the Company with the Securities and Exchange Commission. PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS The Company is not a party to any legal proceedings other than routine litigation which the Company does not believe is significant to its future financial position or results of operations. ITEMS 2 through 5 have been omitted since the item is either inapplicable or the answer is negative. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits EXHIBIT NO. DESCRIPTION ----------- ----------- 11 Computation of Per Share Earnings 11 13 27 Financial Data Schedule 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. YOUTH SERVICES INTERNATIONAL, INC. By: /s/WILLIAM P. MOONEY ---------------------------------- William P. Mooney Chief Financial Officer and Treasurer Date: 12 EX-11 2 COMPUTATION OF PER SHARE EARNINGS 1 EXHIBIT 11 STATEMENT REGARDING COMPUTATION OF DILUTED EARNINGS PER SHARE
THREE THREE MONTHS MONTHS ENDED ENDED 3/31/98 3/31/97 ---------- ---------- Weighted average shares outstanding 10,286,000 9,770,000 (A) Weighted average common stock equivalents outstanding: Common stock Options 1,094,000 Warrants 171,000 ----------- Total 1,265,000 Assumed treasury stock repurchases: Common stock Options 953,000 Warrants 35,000 ----------- Total 988,000 Net weighted average common stock ----------- equivalents 277,000 Total diluted weighted average common stock and common stock ----------- equivalents outstanding 10,563,000 -----------
Note A: The effect of common stock equivalents was excluded from the calculation for the three months ended March 31, 1997 due to the net loss recorded for the period. EX-27 3 FINANCIAL DATA SCHEDULE
5 1,000 3-MOS DEC-31-1997 JAN-01-1998 MAR-31-1998 10,748 0 16,444 405 0 29,816 29,084 6,485 64,537 7,777 0 0 0 103 24,393 64,537 0 20,848 0 18,692 0 0 392 1,764 (653) 1,111 0 0 0 1,111 .11 .11
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