1
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 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 #0-4829-03
NABI
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE 59-1212264
- ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
5800 PARK OF COMMERCE BOULEVARD N.W., BOCA RATON, FL 33487
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(Registrant's telephone number, including area code): (561) 989-5800
-----------------------
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, and (2) has been subject to such filing requirements
for the past 90 days.
YES (X) NO ( )
The number of shares outstanding of registrant's common stock at August 11, 1997
was 34,759,599 shares.
2
QUARTERLY REPORT UNDER SECTION 13 OR 15 (D)
NABI
================================================================================
INDEX
-----
PAGE
----
PART I. FINANCIAL INFORMATION
---------------------
ITEM 1. FINANCIAL STATEMENTS.............................................................................3
Consolidated Balance Sheet, June 30, 1997 and December 31, 1996...........................................3
Consolidated Statement of Operations for the three-month and six-month periods
ended June 30, 1997 and 1996...........................................................................4
Consolidated Statement of Cash Flows for the six-month periods ended
June 30, 1997 and 1996...............................................................................5
Notes to Consolidated Financial Statements................................................................6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS........................................................................................8
PART II. OTHER INFORMATION
-----------------
ITEM 1. LEGAL PROCEEDINGS...............................................................................11
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.............................................12
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K................................................................12
Exhibit 11 - Calculation of Earnings per Share.......................................................14
2
3
NABI
PART I Financial Information
Item 1 Financial Statements
- --------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
JUNE 30, DECEMBER 31,
-------------------------------
(IN THOUSANDS) 1997 1996
- --------------------------------------------------------------------------------
ASSETS
- ------
CURRENT ASSETS:
Cash and cash equivalents $5,358 $18,513
Short-term investments - 8,797
Trade accounts receivable, net 37,798 38,127
Inventories, net 42,075 28,395
Prepaid expenses and other assets 4,119 4,269
-------- --------
TOTAL CURRENT ASSETS 89,350 98,101
PROPERTY AND EQUIPMENT, NET 77,923 60,587
OTHER ASSETS:
Excess of acquisition cost over net assets
acquired, net 17,572 18,072
Intangible assets, net 8,954 9,684
Other, net 18,556 15,698
-------- --------
TOTAL ASSETS $212,355 $202,142
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Trade accounts payable $6,903 $9,800
Accrued expenses 14,905 22,484
Notes payable 6,019 2,187
-------- --------
TOTAL CURRENT LIABILITIES 27,827 34,471
NOTES PAYABLE 94,763 81,278
OTHER 354 332
-------- --------
TOTAL LIABILITIES 122,944 116,081
-------- --------
STOCKHOLDERS' EQUITY:
Convertible preferred stock, par value
$.10 per share: 5,000 shares authorized;
no shares outstanding - -
Common stock, par value $.10 per share:
75,000 shares authorized, 34,762 and
34,614 shares issued and outstanding,
respectively 3,476 3,461
Capital in excess of par value 136,396 136,424
Accumulated deficit (50,461) (53,824)
-------- --------
TOTAL STOCKHOLDERS' EQUITY 89,411 86,061
-------- --------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $212,355 $202,142
======== ========
The accompanying Notes are an integral part of these Financial Statements.
3
4
NABI
- -------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED) (UNAUDITED)
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
----------------------------------------------------------
(IN THOUSANDS, EXCEPT PER SHARE DATA) 1997 1996 1997 1996
- ----------------------------------------------------------------------------------------------------------------------------
SALES $57,915 $57,682 $114,292 $116,234
COSTS AND EXPENSES:
Cost of products sold 42,946 43,625 86,131 88,464
Research and development expense 4,045 3,931 7,843 8,321
Selling, general and administrative expense 5,838 5,745 10,238 10,876
Royalty expense 1,188 1,084 2,397 2,332
Other operating expense, principally freight and amortization 686 946 1,620 1,849
--------- --------- --------- ---------
OPERATING INCOME 3,212 2,351 6,063 4,392
INTEREST AND OTHER INCOME 27 460 214 786
INTEREST AND OTHER EXPENSE (1,008) (1,101) (1,995) (1,992)
--------- --------- --------- ---------
INCOME BEFORE PROVISION FOR INCOME TAXES
AND EXTRAORDINARY CHARGE 2,231 1,710 4,282 3,186
PROVISION FOR INCOME TAXES (218) (68) (919) (127)
--------- --------- --------- ---------
INCOME BEFORE EXTRAORDINARY CHARGE 2,013 1,642 3,363 3,059
EXTRAORDINARY CHARGE -- -- -- (932)
--------- --------- --------- ---------
NET INCOME $2,013 $1,642 $3,363 $2,127
========= ========= ========= =========
EARNINGS PER SHARE:
Income before extraordinary charge $0.06 $0.05 $0.10 $0.09
Extraordinary charge -- -- -- (0.03)
--------- --------- --------- ---------
Net income $0.06 $0.05 $0.10 $0.06
========= ========= ========= =========
WEIGHTED AVERAGE NUMBER OF SHARES AND
COMMON SHARE EQUIVALENTS 35,141 35,781 35,377 35,746
========= ========= ========= =========
The accompanying Notes are an integral part of these Financial Statements.
4
5
NABI
- -------------------------------------------------------------------------------
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
SIX MONTHS ENDED JUNE 30,
-----------------------------
(IN THOUSANDS) 1997 1996
- --------------------------------------------------------------------------------
CASH FLOW FROM OPERATING ACTIVITIES:
Net income $3,363 $2,127
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 4,491 3,868
Provision for doubtful accounts 35 120
Extraordinary charge -- 932
Other 8 56
Change in assets and liabilities:
Decrease (increase) in trade accounts receivable 295 (20,381)
Decrease (increase) in inventories (13,679) (1,095)
Decrease (increase) in prepaid expenses and
other assets 149 (995)
Decrease (increase) in other assets (3,408) (175)
Increase (decrease) in accounts payable and
accrued liabilities (10,846) 1,160
--------- ---------
Total adjustments (22,955) (16,510)
--------- ---------
NET CASH USED BY OPERATING ACTIVITIES (19,592) (14,383)
--------- ---------
CASH FLOW FROM INVESTING ACTIVITIES:
Purchase of short-term investments -- (18,190)
Proceeds from maturity of short-term investments 8,850 1,724
Capital expenditures (20,092) (9,412)
--------- ---------
NET CASH PROVIDED (USED) BY INVESTING ACTIVITIES (11,242) (25,878)
--------- ---------
CASH FLOW FROM FINANCING ACTIVITIES:
Net proceeds from issuance of convertible
subordinated debentures -- 77,884
Repayments of flexible term notes -- (18,000)
Repayments of term debt -- (10,000)
Borrowing (repayments) under line of credit, net 13,700 (6,760)
Other debt 3,600 (2,190)
Proceeds from the exercise of options and
warrants 379 1,618
--------- ---------
NET CASH PROVIDED BY FINANCING ACTIVITIES 17,679 42,552
--------- ---------
NET INCREASE IN CASH AND CASH EQUIVALENTS (13,155) 2,291
CASH AND CASH EQUIVALENTS AT BEGINNING
OF PERIOD 18,513 3,991
--------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $5,358 $6,282
========= =========
The accompanying Notes are an integral part of these Financial Statements.
5
6
NABI
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
------------------------------------------
(UNAUDITED)
NOTE 1 -- GENERAL
NABI is a vertically integrated biopharmaceutical company that supplies human
blood plasma and develops and commercializes therapeutic products for the
prevention and treatment of infectious diseases and immunological disorders.
The consolidated financial statements include the accounts of NABI and its
subsidiaries. All significant intercompany accounts and transactions are
eliminated in consolidation. These statements should be read in conjunction with
the consolidated financial statements and notes thereto included in NABI's
Annual Report to Stockholders for the year ended December 31, 1996.
In the opinion of management, the unaudited consolidated financial statements
include all adjustments necessary to present fairly NABI's consolidated
financial position at June 30, 1997 and the consolidated results of its
operations for the three and six months ended June 30, 1997 and 1996. The
interim results of operations are not necessarily indicative of the results
which may occur for the fiscal year.
NOTE 2 -- INVENTORIES
The components of inventories, stated at the lower of cost (FIFO) or market, are
as follows:
JUNE 30, DECEMBER 31,
-----------------------------------
(In Thousands) 1997 1996
- --------------------------------------------------------------------------------
Finished goods $38,347 $23,610
Work in process 1,258 1,836
Raw materials 8,845 8,504
------------ -------------
48,450 33,950
Less: reserves (6,375) (5,555)
------------ -------------
$42,075 $28,395
============ =============
6
7
NOTE 3 -- PROPERTY AND EQUIPMENT
Property and equipment and related allowances for depreciation and amortization
are summarized below:
JUNE 30, DECEMBER 31,
-----------------------------------
(In Thousands) 1997 1996
- --------------------------------------------------------------------------------
Land and buildings $ 8,682 $ 7,155
Furniture and fixtures 4,844 4,907
Machinery and equipment 23,529 21,531
Leasehold improvements 15,548 15,106
Construction in progress 48,160 32,298
------------ -------------
Total property and equipment 100,763 80,997
Less: accumulated depreciation and
amortization (22,840) (20,410)
------------ -------------
$77,923 $60,587
============ =============
Construction in progress consists primarily of costs incurred in connection with
construction of NABI's biopharmaceutical facility and includes capitalized
interest of $3,829 and $2,757 at June 30, 1997 and December 31, 1996,
respectively.
NOTE 4 -- RECLASSIFICATIONS
Certain items in the consolidated financial statements for the 1996 period have
been reclassified for comparative purposes.
NOTE 5 -- RECENT DEVELOPMENTS
In February 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards (SFAS) Statement No. 128, "Earnings Per Share",
which is effective for years ending after December 15, 1997. NABI plans to
adopt SFAS 128 in the fourth quarter of 1997 and implementation of the
Statement is not expected to have an adverse effect upon the Company's results
of operations.
7
8
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
- --------------------------------------------------------------------------------
The following is a discussion and analysis of the major factors contributing to
NABI's financial condition and results of operations for the three and six month
periods ended June 30, 1997 and 1996. The discussion and analysis should be read
in conjunction with the condensed consolidated financial statements and notes
thereto. All dollar amounts are expressed in thousands, except per share
amounts.
RESULTS OF OPERATIONS
The following table sets forth NABI's results of operations expressed as a
percentage of sales:
THREE MONTHS ENDED SIX MONTHS ENDED,
JUNE 30, JUNE 30,
---------------------------------------------------------------
1997 1996 1997 1996
- ---------------------------------------------------------------------------------------------------------------------
Sales 100.0% 100.0% 100.0% 100.0%
Cost of products sold 74.2 75.6 75.4 76.1
------------- ------------- ------------- -------------
Gross profit margin 25.8 24.4 24.6 23.9
Research and development expense 7.0 6.8 6.9 7.2
Selling, general and administrative expense 10.1 10.0 9.0 9.4
Royalty expense 2.1 1.9 2.1 2.0
Other operating expense 1.1 1.6 1.4 1.6
------------- ------------- ------------- -------------
Operating income 5.5 4.1 5.2 3.7
Interest and other income 0.0 0.8 0.2 0.7
Interest and other expense (1.6) (1.9) (1.7) (1.7)
------------- ------------- ------------- -------------
Income before provision for income taxes and
extraordinary charge 3.9 3.0 3.7 2.7
Provision for income taxes (0.4) (0.2) (0.8) (0.1)
------------- ------------- ------------- -------------
Income before extraordinary charge 3.5 2.8 2.9 2.6
Extraordinary charge -- -- -- (0.8)
------------- ------------- ------------- -------------
Net income 3.5% 2.8% 2.9% 1.8%
============= ============= ============= =============
Information concerning NABI's sales by industry segment, for the respective
periods, is set forth in the following table.
THREE MONTHS ENDED JUNE 30,
-----------------------------------------------------------------
Segment 1997 1996
- ----------------------------------------------------------------------------------------------------------------------
Plasma -Source $34,922 60.3% $28,200 49.0%
-Specialty 14,326 24.7 22,351 38.7
------------ ------------- ------------- -------------
49,248 85.0 50,551 87.7
Immunotherapeutic products 7,583 13.1 5,605 9.7
Diagnostic products and services 1,084 1.9 1,526 2.6
------------- ------------- ------------- -------------
Total $57,915 100.0% $57,682 100.0%
============= ============= ============= =============
8
9
SIX MONTHS ENDED JUNE 30,
-----------------------------------------------------------------
Segment 1997 1996
- ----------------------------------------------------------------------------------------------------------------------
Plasma -Source $ 68,818 60.2% $ 58,827 50.6%
-Specialty 30,582 26.8 44,012 37.9
------------- ------------- ------------- -------------
99,400 87.0 102,839 88.5
Immunotherapeutic products 12,491 10.9 10,402 8.9
Diagnostic products and services 2,401 2.1 2,993 2.6
------------- ------------- ------------- -------------
Total $114,292 100.0% $116,234 100.0%
============= ============= ============= =============
THREE MONTHS ENDED JUNE 30, 1997 AND 1996
SALES. Sales for the second quarter of 1997 were $57.9 million compared to $57.7
million for the second quarter of 1996. Overall, revenues for the quarter were
adversely affected by a short-term shift in demand from specialty plasma,
particularly tetanus, to source plasma. A temporary reduction in plasma
processing by one of the industry's major processors also negatively affected
revenues. The decline in plasma revenue was offset by a substantial increase in
immunotherapeutic revenues over the comparable quarter in 1996. The quarterly
results include sales of Autoplex(R)T, an immunotherapeutic product which was
acquired from Baxter Healthcare Corporation in May 1997.
GROSS PROFIT MARGIN. Gross profit and related margin for the second quarter of
1997 was $15.0 million, or 25.8% of sales, compared to $14.1 million, or 24.4%
of sales, in the second quarter of 1996. An improved sales mix of
immunotherapeutic products relative to total sales accounted for the improved
gross margin.
INTEREST AND OTHER EXPENSE, NET. Interest and other expense, net for the second
quarter of 1997 was $1.0 million, or 1.6% of sales, compared to $0.6 million, or
1.1% of sales, in the second quarter of 1996. The increase was primarily
attributable to lower average outstanding investments and related interest
income when compared to 1996.
OTHER FACTORS. Provision for income taxes was $0.2 million or an effective rate
of 9.8%, in the second quarter of 1997 compared to $68,000, or an effective rate
of 4%, in the second quarter of 1996. The effective rate for the quarter
reflects a cumulative adjustment reducing the Company's expected effective tax
rate for 1997, principally due to foreign trade income and a reduction in tax
reserves established in prior periods. The effective tax rate for the first
quarter of 1996 differs from the statutory rate primarily due to the utilization
of previously reserved net operating loss carryfowards.
9
10
SIX MONTHS ENDED JUNE 30, 1997 AND 1996
SALES. Sales for the first half of 1997 were $114.3 million compared to $116.2
million for the first half of 1996. Overall, revenues for 1997 were adversely
affected by a short-term shift in demand from specialty plasma, particularly
tetanus, to source plasma. A temporary reduction in plasma processing by one of
the industry's major processors also negatively affected revenues. The decline
in plasma revenue was offset by increased immunotherapeutic revenues over the
comparable six months in 1996. The first half results include sales of
Autoplex(R)T, an immunotherapeutic product which was acquired from Baxter
Healthcare Corporation in May 1997.
GROSS PROFIT MARGIN. Gross profit and related margin for the first half of 1997
was $28.2 million, or 24.6% of sales, compared to $27.8 million, or 23.9% of
sales, in the first half of 1996. An improved sales mix of immunotherapeutic
products relative to total sales accounted for the improved gross margin.
RESEARCH AND DEVELOPMENT EXPENSE. Research and development expense was $7.8
million, or 6.9% of sales, for the first half of 1997 compared to $8.3 million,
or 7.2% of sales, in the first half of 1996. The decline in expense related
primarily to the discontinuation of clinical trials for HyperGam+CF in June
1996.
INTEREST AND OTHER EXPENSE, NET. Interest and other expense, net for the first
half of 1997 was $1.8 million, or 1.5% of sales, compared to $1.2 million, or 1%
of sales, in the first six months of 1996. The increase was primarily
attributable to lower average outstanding investments and related interest
income when compared to 1996.
OTHER FACTORS. Provision for income taxes was $0.9 million or an effective rate
of 21.5%, in the first half of 1997 compared to $127,000, or an effective rate
of 4%, in the first half of 1996. The effective rate for the six months ended
June 30, 1997 reflects a cumulative adjustment reducing the Company's expected
effective tax rate for 1997, principally due to foreign trade income and a
reduction in tax reserves established in prior periods. The effective tax rate
for the first half of 1996 differs from the statutory rate, primarily due to the
utilization of previously reserved net operating loss carryforwards.
The first six months of 1996 reflect an extraordinary charge of $0.9 million, or
$.03 per share, due to the recognition of debt issue costs associated with
NABI's early extinguishment of its bank debt through the application of a
portion of the net proceeds of the 6.5% Convertible Subordinated Notes issued
during the first half of 1996.
10
11
LIQUIDITY AND CAPITAL RESOURCES
At June 30, 1997, NABI's credit agreement with its principal lender provided for
a $20 million revolving credit facility maturing on December 31, 1998. NABI had
$13.7 million of indebtedness outstanding as of June 30, 1997 under this
facility which is secured by substantially all assets. The credit agreement
contains covenants requiring the maintenance of various financial ratios and
prohibits the payment of dividends. NABI is currently negotiating with the
lender to restructure the existing credit agreement to provide for a revolving
credit facility of $50 million with an initial term of five years and yearly
renewals, thereafter. It is anticipated that the new credit facility will be
effective in the third quarter of 1997.
As of June 30, 1997, NABI's current assets exceeded current liabilities by $61.5
million as compared to a net working capital position of $63.6 million at
December 31, 1996.
Projected capital expenditures for the remainder of 1997 include validation
costs for manufacturing facilities, development and implementation of
information systems and plasma center renovations. NABI believes that cash on
hand, cash flow from operations and available bank financing will be sufficient
to meet its anticipated cash requirements for the remainder of 1997.
FACTORS TO BE CONSIDERED
The parts of this Quarterly Report on Form 10-Q captioned "Management's
Discussion and Analysis of Financial Condition and Results of Operations" and
"Legal Proceedings" contain certain forward-looking statements which involve
risks and uncertainties. Readers should refer to a discussion under "Factors to
be Considered" contained in NABI's Annual Report on Form 10-K for the year ended
December 31, 1996 concerning certain factors that could cause NABI's actual
results to differ materially from the results anticipated in such
forward-looking statements. Said discussion is hereby incorporated by reference
into this Quarterly Report.
PART II -- OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
NABI is a party to litigation in the ordinary course of business. There have
been no material developments in any of the legal proceedings reported in NABI's
Annual Report on Form 10-K for the year ended December 31, 1996. NABI does not
believe that any such litigation will have a material adverse effect on its
business, financial position or results of operations.
11
12
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The following matters were approved at NABI'S annual stockholders' meeting,
which was held on May 30, 1997:
a) Election of the following Board of Directors:
VOTES
--------------------------------------------
FOR WITHHELD
--------------------------------------------
Paul Bogikes 29,279,904 1,172,204
John C. Carlisle 29,295,640 1,156,468
David L. Castaldi 29,565,174 886,934
Joseph C. Cook, Jr. 29,563,116 888,992
Brian H. Dovey 29,564,675 887,433
George W. Ebright 29,295,265 1,156,843
David J. Gury 29,293,031 1,159,077
Richard A. Harvey, Jr. 29,562,974 889,134
David A. Thompson 29,565,174 886,934
b) Approval of an amendment to the 1990 Equity Incentive Plan to increase
the number of shares of Common Stock which may be awarded by 2,500,000
shares:
VOTES
- -----------------------------------------------------
FOR AGAINST ABSTAINED
- -----------------------------------------------------
15,797,461 4,083,942 223,067
c) Approval for an amendment to the 1990 Equity Incentive Plan to limit
the number of shares of Common Stock available for issuance to any
participant in any calendar year to 250,000 shares:
VOTES
- -----------------------------------------------------
FOR AGAINST ABSTAINED
- -----------------------------------------------------
29,099,010 815,187 283,993
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
11 Calculation of Earnings Per Share..................14
27 Financial Data Schedule (for S.E.C. use only)
b. Reports on Form 8-K:
None
12
13
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.
NABI
DATE: August 14, 1997 By: /s/ Alfred J. Fernandez
-------------------------------------------------
ALFRED J. FERNANDEZ
Senior Vice President and Chief Financial Officer
NABI
- --------------------------------------------------------------------------------
CALCULATION OF EARNINGS PER SHARE
THREE MONTHS ENDED JUNE 30, SIX MONTHS ENDED JUNE 30,
------------------------------------------------------------
(IN THOUSANDS, EXCEPT PER SHARE DATA) 1997 1996 1997 1996
- -------------------------------------------------------------------------------------------------------
Net income $2,013 $1,642 $3,363 $2,127
========= ========= ========= =========
Weighted average number of common shares
outstanding during the period 34,747 34,387 34,712 34,210
Add dilutive effect of common stock
equivalents:
Stock options and warrants (as determined
by the application of the treasury
stock method) 394 1,394 665 1,536
--------- --------- --------- ---------
Weighted average number of shares and
common share equivalents used in
primary earnings per share
computations 35,141 35,781 35,377 35,746
========= ========= ========= =========
Earnings per share $0.06 $0.05 $0.10 $0.06
========= ========= ========= =========
14
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.
NABI
DATE: August 13, 1997 By: /s/ ALFRED J. FERNANDEZ
------------------------------
ALFRED J. FERNANDEZ
Senior Vice President and
Chief Financial Officer
13
1
Exhibit 11
NABI
- --------------------------------------------------------------------------------
Calculation of Earnings Per Share
Three Months Six Months
Ended June 30, Ended June 30,
-------------------- --------------------
(In Thousands, Except Per Share Data) 1997 1996 1997 1996
------- ------- ------- -------
Net income $ 2,013 $ 1,642 $ 3,363 $ 2,127
======= ======= ======= =======
Weighted average number of common
shares outstanding during the period 34,747 34,387 34,712 34,210
Add dilutive effect of common stock
equivalents:
Stock options and warrants (as determined
by the application of the treasury
stock method) 394 1,394 665 1,536
------- ------- ------- -------
Weighted average number of shares and
common share equivalents used in
primary earnings per share computations 35,141 35,781 35,377 35,746
======= ======= ======= =======
Earnings per share $ 0.06 $ 0.05 $ 0.10 $ 0.06
======= ======= ======= =======
14
5
1,000
6-MOS
DEC-31-1997
JAN-01-1997
JUN-30-1997
5,358
0
37,798
0
42,075
89,350
77,923
0
212,355
27,827
94,763
0
0
3,476
85,935
212,355
114,292
114,292
86,131
86,131
22,098
0
1,995
4,282
919
3,363
0
0
0
3,363
0.10
0
RECEIVABLES, INVENTORY AND PP&E REPRESENT NET AMOUNTS.
LOSS PROVISION INCLUDED IN OTHER EXPENSES.
