UNITED STATES
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 APRIL 30, 1995
OR
( ) TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 1-4604
HEICO CORPORATION
(Exact name of registrant as specified in its charter)
FLORIDA 65-0341002
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
3000 TAFT STREET, HOLLYWOOD, FLORIDA 33021
(Address of principal executive offices) (Zip Code)
(305) 987-6101
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year,
if changed since last report)
Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes [X] No [ ]
The number of shares outstanding of the issuer's common stock,
$.01 par value, is 2,298,317 shares as of May 31, 1995.
-1-
HEICO CORPORATION
INDEX
Page No.
Part I. Financial information:
Consolidated Condensed Balance Sheets as of
April 30, 1995 and October 31, 1994............................ 3
Consolidated Condensed Statements of Operations for the
six and three months ended April 30, 1995 and 1994............. 4
Consolidated Condensed Statements of Cash Flows for the
six months ended April 30, 1995 and 1994....................... 5
Notes to Consolidated Condensed Financial Statements............. 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations............................ 8
Part II. Other Information:
Item 1. Legal Proceedings....................................... 12
Item 4. Submission of Matters to a Vote of Security Holders..... 12
Item 5. Other Matters........................................... 12
Item 6. Exhibits and Reports on Form 8-K........................ 13
-2-
PART I. FINANCIAL INFORMATION
HEICO CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
ASSETS
April 30, October 31,
1995 1994
----------- -----------
(Unaudited)
Current assets:
Cash and cash equivalents $4,078,000 $5,030,000
Short-term investments 943,000 --
Accounts receivable, net 6,779,000 5,720,000
Inventories 5,462,000 5,261,000
Prepaid expenses and other current assets 1,342,000 1,329,000
Deferred income taxes 1,350,000 1,251,000
----------- -----------
Total current assets 19,954,000 18,591,000
----------- -----------
Property, plant and equipment 24,537,000 21,908,000
Less accumulated depreciation (14,367,000) (13,300,000)
----------- -----------
Property, plant and equipment, net 10,170,000 8,608,000
----------- -----------
Intangible assets less accumulated amortization of
$1,033,000 in 1995 and $853,000 in 1994 11,651,000 10,169,000
----------- -----------
Investments in and advances to unconsolidated
partnerships 2,089,000 1,152,000
----------- -----------
Other assets 1,019,000 500,000
----------- -----------
Total assets $44,883,000 $39,020,000
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $1,351,000 $1,054,000
Trade accounts payable 1,730,000 1,048,000
Accrued expenses and other current liabilities 3,986,000 3,798,000
----------- -----------
Total current liabilities 7,067,000 5,900,000
----------- -----------
Long-term debt 7,108,000 4,402,000
----------- -----------
Deferred income taxes 1,657,000 1,623,000
----------- -----------
Other non-current liabilities 400,000 --
----------- -----------
Minority interests 4,000 34,000
----------- -----------
Commitments and contingencies:
Shareholders' equity:
Preferred stock, par value $.01 per share; Authorized - 10,000,000
shares issuable in series; 50,000 designated as Series A Junior
Participating Preferred
Stock, none issued -- --
Common stock, $.01 par value; Authorized -
20,000,000 shares; Issued - 2,522,145 shares in 1995 (including
229,286 shares to be issued on July 28, 1995 as a stock dividend)
and 2,493,311 shares in 1994 25,000 23,000
Capital in excess of par value 3,508,000 22,000
Retained earnings 28,806,000 30,994,000
----------- -----------
32,339,000 31,039,000
Less: Note receivable from employee savings and
investment plan (3,692,000) (3,978,000)
----------- -----------
Total shareholders' equity 28,647,000 27,061,000
----------- -----------
Total liabilities and shareholders' equity $44,883,000 $39,020,000
=========== ===========
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
-3-
HEICO CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - UNAUDITED
SIX MONTHS ENDED APRIL 30, THREE MONTHS ENDED APRIL 30,
-------------------------- ----------------------------
1995 1994 1995 1994
----------- ----------- ---------- ----------
Revenues:
Aerospace products and services sales,
net of returns and allowances $11,786,000 $ 8,839,000 $ 6,394,000 $ 4,384,000
Medical services sales, net of allowances 7,492,000 5,871,000 3,951,000 3,417,000
----------- ----------- ----------- -----------
Net sales 19,278,000 14,710,000 10,345,000 7,801,000
----------- ----------- ----------- -----------
Operating costs and expenses:
Cost of aerospace products and services 8,086,000 6,461,000 4,434,000 3,106,000
Cost of medical services 4,919,000 4,029,000 2,601,000 2,284,000
Selling, general and administrative expenses 3,998,000 3,425,000 2,119,000 1,846,000
Equity in loss of unconsolidated partnerships 334,000 161,000 159,000 41,000
----------- ----------- ----------- -----------
Total operating costs and expenses 17,337,000 14,076,000 9,313,000 7,277,000
----------- ----------- ----------- -----------
Income from operations 1,941,000 634,000 1,032,000 524,000
Interest expense (180,000) (78,000) (88,000) (36,000)
Interest and other income 285,000 221,000 142,000 102,000
Minority interest in consolidated partnership (41,000) (7,000) (18,000) (7,000)
----------- ----------- ----------- -----------
Income before income taxes and cumulative
effect of change in accounting principle 2,005,000 770,000 1,068,000 583,000
Income tax expense 784,000 280,000 416,000 212,000
----------- ----------- ----------- -----------
Income before cumulative effect of
change in accounting principle 1,221,000 490,000 652,000 371,000
Cumulative effect on prior years of change
in accounting for income taxes -- 381,000 -- --
----------- ----------- ----------- --------
Net income $ 1,221,000 $ 871,000 $ 652,000 $ 371,000
=========== =========== =========== ===========
Income per share before cumulative effect
of change in accounting principle $ .48 $ .19 $ .25 $ .15
===== ===== ===== =====
Net income per share $ .48 $ .34 $ .25 $ .15
===== ===== ===== =====
Weighted average number of common
and common equivalent shares outstanding 2,560,680 2,546,199 2,592,809 2,530,039
=========== =========== =========== ===========
Cash dividends per share $.068 $.068
===== =====
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
-4-
HEICO CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - UNAUDITED
SIX MONTHS ENDED
APRIL 30,
-------------------------------------
1995 1994
---------- ---------
Cash flows from operating activities:
Net income $1,221,000 $871,000
Items affecting cash from operations:
Depreciation and amortization 1,222,000 911,000
Deferred income taxes (65,000) (206,000)
Loss from unconsolidated partnerships 495,000 308,000
Minority interest in consolidated partnerships 41,000 7,000
Cumulative effect of change in
accounting principle -- (381,000)
Change in assets and liabilities:
(Increase) in accounts receivable (1,058,000) (503,000)
(Increase) in inventories (202,000) (638,000)
(Increase) in prepaid expenses and other
current assets (5,000) (11,000)
Increase in trade payables, accrued
expenses and other current liabilities 899,000 458,000
Other 18,000 (7,000)
---------- -----------
Net cash provided by operating activities 2,566,000 809,000
---------- -----------
Cash flows from investing activities:
Advances to unconsolidated partnerships (509,000) (205,000)
Purchases of property, plant and equipment (386,000) (606,000)
Acquisitions:
Contingent note payments (1,076,000) (611,000)
Other (64,000) (1,107,000)
Purchase of short-term investments (943,000) --
Deferred organization costs (279,000) --
Payment received from employee savings and
investment plan note receivable 286,000 --
Other 4,000 (202,000)
---------- -----------
Net cash (used in) investing activities (2,967,000) (2,731,000)
---------- -----------
Cash flows from financing activities:
Proceeds from the exercise of stock options 367,000 22,000
Proceeds from the issuance of long-term debt 80,000 30,000
Payments on long-term debt (637,000) (179,000)
Repurchase of common stock (117,000) (238,000)
Cash dividends paid (171,000) (170,000)
Other (73,000) 7,000
---------- -----------
Net cash (used in) financing activities (551,000) (528,000)
---------- -----------
Net (decrease) in cash and cash equivalents (952,000) (2,450,000)
Cash and cash equivalents at beginning of year 5,030,000 5,481,000
---------- -----------
Cash and cash equivalents at end of period $4,078,000 $3,031,000
========== ===========
SEE NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS.
-5-
HEICO CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS - UNAUDITED
For the six months ended April 30, 1995 and 1994
1. The accompanying unaudited consolidated condensed financial statements
have been prepared in accordance with the instructions to Form 10-Q and
therefore do not include all information and footnotes normally included in
annual consolidated financial statements and should be read in conjunction
with the financial statements and notes thereto included in the Company's
latest Annual Report on Form 10-K for the year ended October 31, 1994. In
the opinion of management, the unaudited consolidated condensed financial
statements contain all adjustments (consisting of only normal recurring
accruals) necessary for a fair presentation of the consolidated condensed
balance sheets and consolidated condensed statements of operations and cash
flow for such interim periods presented. The results of operations for the
six months ended April 30, 1995 are not necessarily indicative of the
results which may be expected for the entire fiscal year.
2. Short-term investments are highly liquid investments with maturities of
more than three months when purchased and are carried at cost, which
approximates market.
3. Accounts receivable are composed of the following:
APRIL 30, 1995 OCTOBER 31, 1994
------------------ ----------------
Accounts receivable.............................. $ 8,534,000 $ 7,284,000
Less contractual allowances and
allowance for doubtful accounts............... 1,755,000 1,564,000
------------------ ----------------
Accounts receivable, net......................... $ 6,779,000 $ 5,720,000
================== ================
Inventories are comprised of the following:
APRIL 30, 1995 OCTOBER 31, 1994
------------------ ----------------
Finished products................................ $ 2,282,000 $ 1,916,000
Work in process.................................. 1,867,000 1,784,000
Materials, parts, assemblies and supplies........ 1,313,000 1,561,000
------------------ ----------------
Total inventories................................ $ 5,462,000 $ 5,261,000
================== ================
Revenue, inventory and receivable amounts set forth in the accompanying
consolidated condensed financial statements do not include any material
amounts related to long-term contracts.
4. Certain MediTek operating costs have been reclassified from selling,
general and administrative expenses to cost of medical services for the six
and three months ended April 30, 1994 in the amounts of $1,350,000 and
$808,000, respectively, to conform with the fiscal 1994 year end
presentation.
-6-
5. The equity in loss of unconsolidated partnerships reported in the
consolidated condensed statements of operations for the six month and three
month periods has been reduced by interest income from the unconsolidated
partnerships of $161,000 and $82,000, respectively, in 1995 and $147,000
and $75,000, respectively, in 1994.
6. On May 8, 1995, the Company's Board of Directors declared a 10% stock
dividend payable July 28, 1995 to shareholders of record on July 7, 1995.
This transaction was recorded as if it had occurred on April 30, 1995. The
transaction was valued based on the closing market price of the Company's
stock on May 5, 1995. Retained earnings was charged $3,238,000 as a result
of the 229,286 shares of the Company's common stock to be issued. All
income per share, dividend per share and common shares outstanding
information has been restated to reflect this stock dividend.
7. Income per share is calculated on the basis of the weighted average
number of common shares outstanding during each period plus common share
equivalents arising from the assumed exercise of stock options, if
dilutive.
8. Supplemental disclosures of cash flow information for the six months
ended April 30, 1995 and 1994 are as follows:
Cash paid for interest was $180,000 and $84,000 in 1995 and 1994,
respectively. Cash paid for income taxes was $420,000 and $164,000 in 1995
and 1994, respectively.
Non-cash investing and financing activities related to purchases of
property, plant and equipment of $2,218,000, investments in and advances to
unconsolidated partnerships of $908,000 and deferred charges of $484,000
which were financed by capital leases assumed from an unconsolidated
partnership during fiscal 1995. Additionally, retained earnings was charged
$3,238,000 effective April 30, 1995 as a result of the 10% stock dividend
described in Note 6 above.
-7-
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
For the six months ended April 30, 1995 and 1994
RESULTS OF OPERATIONS
Fiscal 1995 second quarter net income of $652,000 ($.25 per share)
increased 76% over fiscal 1994 second quarter net income of $371,000 ($.15
per share) and increased 15% over fiscal 1995 first quarter net of income
of $569,000 ($.23 per share). Fiscal 1995 second quarter net sales totaled
$10,345,000, representing a 33% increase over sales of $7,801,000 in the
second quarter of fiscal 1994.
For the first half of fiscal 1995, net sales and net income totaled
$19,278,000 and $1,221,000 ($.48 per share), respectively, representing a
31% increase over sales of $14,710,000 in the first half of fiscal 1994 and
a 40% increase over net income of $871,000 ($.34 per share) in the first
half of fiscal 1994.
The net income improvement in fiscal 1995 represents a 149% increase over
last year's six month results, after excluding the impact of an accounting
change which increased net income during the first six months of last year
by $381,000 ($.15 per share).
The improved fiscal 1995 operating results are attributable to increased
sales volume in the Company's aerospace products and services subsidiary,
HEICO Aerospace Corporation, and increased sales of the Company's
healthcare services subsidiary, MediTek Health Corporation, discussed
below.
Net sales of HEICO Aerospace totaled $6,394,000 in the second quarter of
fiscal 1995, representing a $2,010,000, or 46%, increase over its revenues
in the second quarter of last year. In the first six months of fiscal 1995,
net sales of HEICO Aerospace totaled $11,786,000 as compared to $8,839,000
in the same period of fiscal 1994, representing a $2,947,000, or 33%,
increase. These increases are due principally to higher sales volumes of
the Company's commercial jet engine replacement parts.
Net sales of MediTek totaled $3,951,000 in the second quarter of fiscal
1995, representing a $534,000, or 16%, increase over its revenues in the
second quarter of last year. In the first six months of fiscal 1995, net
sales of MediTek totaled $7,492,000, representing an increase of
$1,621,000, or 28%, over revenues in
-8-
the first six months of fiscal 1994. The fiscal 1995 increase in MediTek's
revenues are due principally to the inclusion of one medical diagnostic
facility acquired in February 1994, as well as the opening of two new
medical diagnostic centers, one each in the second quarter of fiscal 1994
and second quarter of fiscal 1995. Further, the increase reflects the
addition of Magnetic Resonance Imaging (MRI) capabilities at another one of
MediTek's facilities in the second half of fiscal 1994. Net sales of
MediTek exclude revenues of the unconsolidated partnerships, which totaled
$2.6 million and $3.4 million in the first half of fiscal 1995 and 1994,
respectively, and $1.3 million and $1.7 million in the second quarter of
fiscal 1995 and fiscal 1994, respectively.
HEICO Aerospace's total backlog of $14.3 million as of April 30, 1995
increased $2.7 million from $11.6 million as of April 30, 1994 and remained
level with the October 31, 1994 backlog balance. The increase in current
backlog over that of April 30, 1994 is principally due to increases in
orders from HEICO Aerospace's commercial airline industry customers. The
backlog includes amounts based on estimated quantities provided by
customers pursuant to certain contracts aggregating approximately $5
million at April 30, 1995.
HEICO Aerospace's gross profit margins averaged 31.4% for the first half of
fiscal 1995 and 30.7% in the second quarter of fiscal 1995, as compared to
26.9% and 29.2%, respectively, in the comparable six month and three month
periods of fiscal 1994. The increases in gross profit margins in the
current year reflect an increase in sales of higher margin products and
manufacturing cost reductions.
MediTek's gross profit margins averaged 34.3% for the first half of fiscal
1995 and 34.2% in the second quarter of fiscal 1995 as compared to 31.4%
and 33.2%, respectively, in the comparable six-month and three-month
periods of fiscal 1994. The increases in gross profit margins in the
current year are principally due to improved performance at certain centers
resulting primarily from higher sales volumes.
Selling, general and administrative expenses in the first half and second
quarter fiscal 1995 increased $573,000 and $273,000, respectively, over
amounts in the same periods of fiscal 1994 due principally to increased
general corporate expenses and increased HEICO Aerospace marketing efforts,
partially offset by the effects of expense reduction programs at MediTek.
As a percentage of sales, however, these expenses declined as a percentage
of consolidated net sales to 20.7% in the first half of fiscal 1995 and
20.5% in the second quarter of fiscal 1995, down from 23.3% and 23.7%,
respectively, in the comparable six-month and three-month periods of fiscal
1994.
-9-
The equity in loss of unconsolidated partnerships increased in the first
half and second quarter of fiscal 1995 from the same periods of last year
primarily due to lower sales volumes at the partnership centers. The equity
in loss of these partnerships includes costs representing the management
services fee income payable to MediTek and included in consolidated net
sales as part of medical services sales. This income totaled $304,000 and
$356,000 in the first half of fiscal 1995 and fiscal 1994, respectively,
and $169,000 and $183,000 in the second quarter of fiscal 1995 and fiscal
1994, respectively.
Income from operations, which totaled $1,941,000 for the first six months
of fiscal 1995 and $1,032,000 for the second quarter of fiscal 1995,
increased $1,307,000 and $508,000, respectively, over the same six-month
and three-month periods of last year. This increase reflects income from
operations at HEICO Aerospace of approximately $2.2 million in the first
half of fiscal 1995 and $1.1 million in the second quarter of fiscal 1995
as compared to approximately $1.1 million and $600,000, respectively, in
the same six-month and three-month periods of last year. The increase also
reflects income from operations at MediTek of approximately $1.4 million
for the first half of the current year and $700,000 for the second quarter
of the current year as compared to approximately $800,000 and $600,000,
respectively, in the same six-month and three-month periods of last year.
The increases at HEICO Aerospace and MediTek were partially offset by
higher general corporate expenses. HEICO Aerospace's improvement is due
primarily to the aforementioned sales volume increases and gross profit
margin improvements. MediTek's improvement results primarily from the
additional revenues discussed above.
Interest expense in the first half of fiscal 1995 totaled $180,000 as
compared to $78,000 in the first half of fiscal 1994 and $88,000 in the
second quarter of fiscal 1995 as compared to $36,000 in the second quarter
of fiscal 1994. These increases are primarily attributable to additional
debt associated with MediTek centers.
Interest and other income increased $64,000 from the first six months of
fiscal 1994 versus the first six months of the current year and $40,000
from the second quarter of fiscal 1994 versus the second quarter of fiscal
1995 due principally to an increase in market interest rates and an
increase in invested cash.
The Company's effective tax rate increased from 36.4% for the first half of
fiscal 1994 to 39.1% in the same period of fiscal 1995 primarily due to the
reduced impact of tax benefits on investment income and export sales as a
result of the higher level of income from operations.
-10-
LIQUIDITY AND CAPITAL RESOURCES
During the first six months of fiscal 1995, net cash provided by operating
activities totaled $2,566,000, up from $809,000 in the first six months of
fiscal 1994 primarily as a result of higher operating earnings.
The Company's principal investing activities during the first six months of
fiscal 1995 were the purchase of short-term investments and contingent note
payments related to MediTek's acquisitions.
The Company's principal financing activities during the first half of
fiscal 1995 were the receipt of funds for the exercise of Company stock
options and the payment of funds for the open market purchases of 13,000
shares of the Company's stock, scheduled payments on long-term debt and
payments of cash dividends.
There have been no other material changes in the liquidity or the capital
resources of the Company since the end of fiscal 1994.
-11-
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There have been no material developments in previously reported
litigation involving the Company and its subsidiaries. See also
reference to plaintiff litigation in Item 5. "Other Matters."
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Annual Meeting of Shareholders was held on March 21, 1995. The
only proposal voted on at this meeting was for the election of
Directors. All nominees ran unopposed and were elected to serve
until the next annual meeting or until a Director's successor is
elected and qualified.
ITEM 5. OTHER MATTERS
In June 1994, the Second Judicial Circuit Court of Florida, in and
for Leon County (the "State Court") in a lawsuit in which MediTek
was a co-plaintiff ruled that certain fee caps (the "Fee Caps")
passed by the State of Florida's (the "State") legislature in 1992
limiting fees charged by designated health service providers,
including diagnostic imaging, violated the Constitution of the
State and, therefore, are unenforceable. In February 1995, the
State Court issued an order granting final summary judgement that
the Fee Caps were unconstitutional for providers of diagnostic
imaging services. The State is expected to appeal the decision,
but has not yet filed an appeal.
As a result of the State Court's decision, MediTek is not
presently subject to the Fee Caps. Further, due to other court
challenges, MediTek and all other diagnostic imaging service
providers have never been subject to the Fee Caps. Although
MediTek believes that the Fee Caps violate both the Florida
Constitution and the United States Constitution, there can be no
assurance that the State Court's decision will not be reversed, or
that the Fee Caps will ultimately be found to be unconstitutional
or that the Fee Caps would not be reinstated retroactively to the
initial effective date. Imposition of Fee Caps could have a
materially adverse impact upon MediTek's operations within
Florida, which contributed approximately 46% of MediTek's income
from operations for the first six months of fiscal 1995. (See Item
1. Business - Medical Services, "Government regulation" of the
Company's Form 10-K for the year ended October 31, 1994.)
-12-
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibit 11 - Computation of earnings per share.
(b) Exhibit 27 - Financial Data Schedule (electronic filing only).
(c) There were no reports on Form 8-K filed during the
three months ended April 30, 1995.
-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.
HEICO CORPORATION
-----------------
(Registrant)
JUNE 12, 1995 BY /S/ THOMAS S. IRWIN
- - ---------------------- --------------------------------------------
Date Thomas S. Irwin, Executive Vice
President and Chief Financial Officer
(Principal Financial and Accounting Officer)
-14-
Exhibit 11
HEICO CORPORATION AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
1995 (2) 1994 (2)
-------------------------- ---------------------------
FULLY FULLY
PRIMARY DILUTED PRIMARY DILUTED
--------- --------- --------- ---------
Six months ended April 30:
Weighted average number of common
shares outstanding 2,501,323 2,501,323 2,497,254 2,497,254
Common Stock equivalents arising from
dilutive stock options (1) 59,357 108,721 48,945 48,945
--------- --------- --------- ---------
2,560,680 2,610,044 2,546,199 2,546,199
========= ========= ========= =========
Income per share from operations
before cumulative effect of
change in accounting principle $0.48 $0.47 $0.19 $0.19
===== ===== ===== =====
Cumulative effect per share of
change in accounting principle -- -- $0.15 $0.15
===== ===== ===== =====
Net income per share (1) $0.48 $0.47 $0.34 $0.34
===== ===== ===== =====
Three months ended April 30:
Weighted average number of common
shares outstanding 2,508,032 2,508,032 2,493,311 2,493,311
Common Stock equivalents arising from
dilutive stock options (1) 84,777 169,354 36,728 36,728
--------- --------- --------- ---------
2,592,809 2,677,386 2,530,039 2,530,039
========= ========= ========= =========
Income per share from operations
before cumulative effect of
change in accounting principle $0.25 $0.24 $0.15 $0.15
===== ===== ===== =====
Cumulative effect per share of
change in accounting principle -- -- -- --
===== ===== ===== ====
Net income per share (1) $0.25 $0.24 $0.15 $0.15
===== ===== ===== =====
(1) Computed under the "treasury stock" method using the average market
price for the primary computation and using the higher of average or
ending market prices for the fully diluted computation.
(2) All of the following information has been restated to reflect the 10%
stock dividend declared on May 8, 1995 (see Note 6 to the Consolidated
Condensed Financial Statements).
-15-
5
6-MOS
OCT-31-1995
APR-30-1995
4,078,000
943,000
8,534,000
(1,755,000)
5,462,000
19,954,000
24,537,000
(14,367,000)
44,883,000
7,067,000
7,108,000
25,000
0
0
28,622,000
44,883,000
11,786,000
19,278,000
8,086,000
13,005,000
4,332,000
0
180,000
2,005,000
784,000
1,221,000
0
0
0
1,221,000
.48
.47
