1
FORM 10-Q
----------------------------
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-------------------------
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
DECEMBER 31, 1995
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
-------- --------
COMMISSION FILE NUMBER 1-5667
CABOT CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 04-2271897
(State of Incorporation) (I.R.S. Employer Identification No.)
75 STATE STREET 02109-1806
BOSTON, MASSACHUSETTS (Zip Code)
(Address of principal executive offices)
Registrant's telephone number, including area code: (617)345-0100
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
---------- ----------
Indicate the number of shares outstanding of each of the issuer's classes of
Common Stock, as of the latest practicable date.
AS OF DECEMBER 31, 1995, THE COMPANY HAD 35,603,870 SHARES OF COMMON
STOCK, PAR VALUE $1 PER SHARE, OUTSTANDING.
2
CABOT CORPORATION
INDEX
Part I. Financial Information Page No.
--------
Item 1. Financial Statements
Consolidated Statements of Income
Three Months Ended December 31, 1995 and 1994 3
Consolidated Balance Sheets
December 31, 1995 and September 30, 1995 4
Consolidated Statements of Cash Flows
Three Months Ended December 31, 1995 and 1994 6
Notes to Consolidated Financial Statements 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 9
Part II. Other Information
Item 2. Changes in Securities 12
Item 6. Exhibits and Reports on Form 8-K 12
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Part I. Financial Information
Item 1. Financial Statements
- -------
CABOT CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended December 31, 1995 and 1994
(Dollars in thousands, except per share amounts)
UNAUDITED
1995 1994
---- ----
Revenues:
Net sales and other operating revenues $443,031 $427,960
Interest and dividend income 2,461 2,535
-------- --------
Total revenues 445,492 430,495
-------- --------
Costs and expenses:
Cost of sales 305,133 296,829
Selling and administrative expenses 46,631 55,568
Research and technical service 14,277 12,839
Interest expense 9,421 10,036
Other charges, net 5,273 4,326
-------- --------
Total costs and expenses 380,735 379,598
-------- --------
Income before income taxes 64,757 50,897
Provision for income taxes (23,960) (18,832)
Equity in net income of affiliated companies 3,723 1,683
Minority interest (1,169) 160
-------- --------
Net income 43,351 33,908
Dividends on preferred stock, net of tax
benefit of $475 and $479 (883) (890)
-------- --------
Income applicable to primary common shares $ 42,468 $ 33,018
======== ========
Weighted average common shares outstanding (000):
Primary 37,557 38,619
Fully diluted (Note A) 40,659 41,740
Income per common share:
Primary $ 1.13 $ 0.85
======== ========
Fully diluted (Note A) $ 1.05 $ 0.80
======== ========
Dividends per common share $ 0.18 $ 0.14
======== ========
The accompanying notes are an integral part of these financial statements.
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CABOT CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, 1995 and September 30, 1995
(Dollars in thousands)
ASSETS
December 31
1995 September 30
(Unaudited) 1995
----------- ------------
Current assets:
Cash and cash equivalents $ 55,996 $ 90,792
Accounts and notes receivable
(net of reserve for doubtful
accounts of $5,325 and $5,207) 302,266 292,777
Inventories:
Raw materials 75,692 64,830
Work in process 57,870 47,058
Finished goods 115,086 97,597
Other 46,389 43,625
---------- ----------
Total inventories 295,037 253,110
Prepaid expenses 18,403 13,499
Deferred income taxes 29,498 27,681
---------- ----------
Total current assets 701,200 677,859
---------- ----------
Investments:
Equity 75,787 98,866
Other 127,009 119,866
---------- ----------
Total investments 202,796 218,732
---------- ----------
Property, plant and equipment 1,537,627 1,447,653
Accumulated depreciation and amortization (766,715) (741,132)
---------- ----------
Net property, plant and equipment 770,912 706,521
---------- ----------
Other assets:
Intangible assets, net of amortization 13,789 13,922
Deferred income taxes 7,404 6,949
Other assets 31,757 30,350
---------- ----------
Total other assets 52,950 51,221
---------- ----------
Total assets $1,727,858 $1,654,333
========== ==========
The accompanying notes are an integral part of these financial statements.
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CABOT CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, 1995 and September 30, 1995
(Dollars in thousands)
LIABILITIES & STOCKHOLDERS' EQUITY
December 31
1995 September 30
(Unaudited) 1995
----------- ------------
Current liabilities:
Notes payable to banks $ 163,818 $ 52,437
Current portion of long-term debt 14,481 15,709
Accounts payable and accrued liabilities 253,558 260,879
U.S. and foreign income taxes payable 44,462 69,286
Deferred income taxes 4,334 4,068
---------- ----------
Total current liabilities 480,653 402,379
---------- ----------
Long-term debt 335,118 306,443
Deferred income taxes 106,938 100,353
Other liabilities 148,408 152,747
Commitments and contingencies (Note B)
Minority interest 26,263 7,411
Stockholders' Equity (Note C):
Preferred Stock:
Authorized: 2,000,000 shares of $1 par value
Series A Junior Participating Preferred Stock
Issued and outstanding: none
Series B ESOP Convertible Preferred Stock 7.75%
Cumulative Issued: 75,336 shares (aggregate
redemption value of $71,753 and $72,479) 75,336 75,336
Less cost of shares of preferred treasury stock (5,249) (4,836)
Common stock:
Authorized: 80,000,000 shares of $1 par value
Issued: 67,774,968 shares 67,775 67,775
Additional paid-in capital 17,762 17,799
Retained earnings 1,096,494 1,062,482
Less cost of common treasury stock
(including unearned amounts of $9,165 and $10,834) (626,045) (539,585)
Deferred employee benefits (65,513) (65,907)
Unrealized gain on marketable securities 36,482 32,023
Foreign currency translation adjustments 33,436 39,913
---------- ----------
Total stockholders' equity 630,478 685,000
---------- ----------
Total liabilities and stockholders' equity $1,727,858 $1,654,333
========== ==========
The accompanying notes are an integral part of these financial statements.
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CABOT CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended December 31, 1995 and 1994
(Dollars in thousands)
UNAUDITED
1995 1994
---- ----
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 43,351 $ 33,908
Adjustments to reconcile net income to cash
provided by operating activities:
Depreciation and amortization 23,542 23,417
Deferred tax provision 62 1,579
Equity in net income of affiliated companies,
net of dividends received (258) (423)
Other, net 2,414 1,585
Changes in assets and liabilities, net of consolidation
of equity affiliates:
Decrease/(increase) in accounts receivable 837 (13,825)
Increase in inventory (34,677) (27,437)
Decrease in accounts payable and accruals (17,283) (17,689)
Increase in prepayments and intangible assets (695) (1,235)
Other, net (29,561) 9,692
-------- --------
Cash (used) provided by operating activities (12,268) 9,572
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (28,621) (24,288)
Investments -- (20)
Cash from consolidation of equity affiliates 9,306 --
Other 1,254 33
-------- --------
Cash used by investing activities (18,061) (24,275)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term debt (10,247) (151,411)
Net increase in short-term debt 103,345 119,046
Purchases of treasury stock (90,410) (4,096)
Sales and issuances of treasury stock 2,025 6,085
Cash dividends paid to stockholders (7,499) (6,211)
Redemption of preferred stock purchase rights (1,840) --
-------- --------
Cash used by financing activities (4,626) (36,587)
Effect of exchange rate changes on cash 159 (105)
-------- --------
Decrease in cash and cash equivalents (34,796) (51,395)
Cash and cash equivalents at beginning of period 90,792 80,917
-------- --------
Cash and cash equivalents at end of period $ 55,996 $ 29,522
======== ========
The accompanying notes are an integral part of these financial statements.
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CABOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 1995
A. SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation
The consolidated financial statements include the accounts of
Cabot Corporation and majority-owned and controlled domestic and foreign
subsidiaries. Investments in majority-owned affiliates where control does
not exist and investments in 20 percent to 50 percent-owned affiliates are
accounted for on the equity method. As of October 1, 1995, the Company
changed the accounting for its Czech Republic and Indian carbon black
affiliates from the equity method to the consolidated method upon
achieving control. Intercompany transactions have been eliminated.
The financial statements have been prepared in accordance with the
requirements of Form 10-Q and consequently do not include all disclosures
required by Form 10-K. Additional information may be obtained by
referring to the Company's Form 10-K for the year ended September 30,
1995.
The financial information submitted herewith is unaudited and reflects
all adjustments which are, in the opinion of management, necessary to
provide a fair statement of the results for the interim periods ended
December 31, 1995 and 1994. All such adjustments are of a normal recurring
nature. The results for interim periods are not necessarily indicative of
the results to be expected for the fiscal year.
Earnings Per Share
The computation of fully diluted earnings per share considers the
conversion of the Company's Series B ESOP Convertible Preferred Stock held
by the Company's Employee Stock Ownership Plan, and also includes the
potentially dilutive effects of the Company's Equity Incentive Plan.
Reclassification
Certain amounts in fiscal 1995 have been reclassified to conform to the
fiscal 1996 presentation.
B. COMMITMENTS AND CONTINGENCIES
The Company has various lawsuits, claims and contingent liabilities.
In the opinion of the Company, although final disposition of all of its
suits and claims may impact the Company's financial statements in a
particular period, they should not, in the aggregate, have a material
adverse effect on the Company's financial position. As of the end of the
quarter, approximately $60 million is presently committed for various
capital projects.
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8
CABOT CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
December 31, 1995
UNAUDITED
C. STOCKHOLDERS' EQUITY
The following table summarizes the changes in stockholders' equity for the three months ended December 31, 1995.
(Dollars in thousands)
Preferred Stock Preferred
--------------- Treasury Stock Common Stock Additional
Shares -------------- Shares Paid-in
Issued Value Shares Cost Issued Value Capital
----- ----- ----- ---- ------ ----- -------
Balance at September 30, 1995 75,336 $75,336 5,036 $(4,836) 67,774,968 $67,775 $17,799
Net Income
Common stock dividends paid
Redemption of preferred stock
purchase rights
Issuance of treasury stock under
employee compensation plans (338)
Purchase of treasury stock - common
Purchase of treasury stock - preferred 177 (413)
Sale of treasury stock to Cabot Retirement
Incentive Savings Plan 301
Preferred stock dividends paid to Employee
Stock Ownership Plan, net of tax
Principal payment by Employee Stock
Ownership Plan under guaranteed loan
Amortization of unearned compensation
Unrealized gain/(loss), net of deferred tax
Foreign currency translation adjustments
------ ------- ----- -------- ---------- ------- -------
Balance at December 31, 1995 75,336 $75,336 5,213 $(5,249) 67,774,968 $67,775 $17,762
====== ======= ===== ======== ========== ======= =======
(Dollars in thousands)
Common Unrealized
Treasury Stock Deferred Gain/(Loss)
Retained -------------- Unearned Employee Marketable
Earnings Shares Cost Compensation Benefits Securities
-------- ------ ---- ------------ -------- -----------
Balance at September 30, 1995 $1,062,482 30,392,967 $(528,751) $(10,834) $(65,907) $32,023
Net Income 43,351
Common stock dividends paid (6,616)
Redemption of preferred stock
purchase rights (1,840)
Issuance of treasury stock under
employee compensation plans (88,475) 1,701 194
Purchase of treasury stock - common 1,876,004 (89,997)
Purchase of treasury stock - preferred
Sale of treasury stock to Cabot Retirement
Incentive Savings Plan (9,398) 167
Preferred stock dividends paid to Employee
Stock Ownership Plan, net of tax (883)
Principal payment by Employee Stock
Ownership Plan under guaranteed loan 394
Amortization of unearned compensation 1,475
Unrealized gain/(loss), net of deferred tax 4,459
Foreign currency translation adjustments
---------- ---------- ---------- -------- --------- -------
Balance at December 31, 1995 $1,096,494 32,171,098 $(616,880) $(9,165) $(65,513) $36,482
========== ========== ========== ======== ========= =======
(Dollars in thousands)
Foreign
Currency Total
Translation Stockholders'
Adjustments Equity
----------- -------------
Balance at September 30, 1995 $39,913 $685,000
Net Income 43,351
Common stock dividends paid (6,616)
Redemption of preferred stock
purchase rights (1,840)
Issuance of treasury stock under
employee compensation plans 1,557
Purchase of treasury stock - common (89,997)
Purchase of treasury stock - preferred (413)
Sale of treasury stock to Cabot Retirement
Incentive Savings Plan 468
Preferred stock dividends paid to Employee
Stock Ownership Plan, net of tax (883)
Principal payment by Employee Stock
Ownership Plan under guaranteed loan 394
Amortization of unearned compensation 1,475
Unrealized gain/(loss), net of deferred tax 4,459
Foreign currency translation adjustments (6,477) (6,477)
------- --------
Balance at December 31, 1995 $33,436 $630,478
======= ========
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CABOT CORPORATION
Item 2. Management's Discussion and Analysis of
- ------- Financial Condition and Results of Operations
I. RESULTS OF OPERATIONS
Sales and operating profit by industry segment are shown in the accompanying
table on page 11.
Three Months Ended December 31, 1995 versus
Three Months Ended December 31, 1994
Net income for the first quarter of fiscal 1996 was $43.4 million ($1.05
per common share, fully diluted), compared with net income of $33.9 million
($0.80 per common share, fully diluted) in the same quarter a year ago. Net
sales and other operating revenues increased 4% to $443.0 million from $428.0
million. Total operating profit improved 20% to $80.1 million, reflecting
improvement in both the Specialty Chemicals and Materials, and Energy Groups.
In the Specialty Chemicals and Materials Group, net sales fell 2% to
$344.0 million from $349.8 million last year due to the removal of sales of
Cabot Safety Corporation, which was deconsolidated in the fourth quarter of
fiscal 1995, partly offset by the addition of sales from carbon black
subsidiaries in the Czech Republic and India, both of which were consolidated
at the beginning of the quarter. On a comparable basis, Specialty Chemicals and
Materials Group sales increased 8% in the quarter versus last year. The
reported operating profit of the Group improved 19% to $71.8 million from $60.4
million last year. The increase is a result of pricing improvement in every
business in the Group, which more than offset raw material cost increases and
volume decreases in several sectors. The most significant volume variances
during the first quarter of fiscal 1996 from 1995 were decreases of 24% and 13%
in the Plastics and Cab-O-Sil businesses, respectively, and a 15% increase in
the Performance Materials Division.
In the Energy Group, sales increased 27% to $99.0 million from $78.2
million and operating profit grew 32% to $8.3 million from $6.3 million last
year. Operating profit in the first quarter of fiscal 1996 includes a $3.3
million gain (approximately $0.05 per common share, fully diluted) associated
with the reduction in the Company's ownership position, from 25% to 10%, in the
Trinidad liquefaction plant project. Operating profit, exclusive of this gain,
declined 21% due primarily to higher costs for pipeline gas purchased by the
Company's liquefied natural gas ("LNG") business. Supplies of LNG continue to
be curtailed by the refurbishment efforts of the Company's Algerian supplier.
This is expected to continue through the peak winter months. As previously
announced, the Company has agreed to sell its TUCO subsidiary to Southwestern
Public Service Company ("SPS") for consideration of approximately $77 million.
The closing of the sale is subject to SPS's receiving various regulatory
approvals; these approvals are presently being sought by SPS. One such
approval, involving SPS's request for special rate treatment for the
transaction, was recently denied by the Public Utility Commission of Texas. SPS
is considering what action it will take as a result of that denial.
Equity in net income of affiliates improved to $3.7 million from $1.7
million in the same quarter a year ago. The significant growth is due to
improved profitability at several of the Company's affiliates, including the
Mexican carbon black affiliate and the Japanese performance materials
affiliate. Also, as of October 1, 1995, the Company began to report the
results of its Czech Republic and Indian carbon black businesses on a
consolidated basis, which partially offset the above increases.
During the months of November and December, the Company began to see
some early signs of economic softening in several regions of the world.
However, the Company believes that it is too early to determine whether these
conditions are temporary or will have a significant impact on the businesses.
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10
CABOT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
II. CASH FLOWS AND LIQUIDITY
During the quarter, the Company's operations used $12.3 million of cash
primarily as a result of building inventories in the Company's Performance
Materials, TUCO, LNG, and North American Carbon Black businesses and decreases
in accounts payable and income taxes payable.
The Company increased its borrowings by $93.1 million during the
quarter, primarily to fund the previously announced share repurchase program
described below.
The Company expects capital expenditures, which were $28.6 million in
the quarter, to continue at a higher rate for the remainder of the fiscal year.
As the Company continues to invest in new business opportunities, it expects to
spend approximately $300 million during this fiscal year on capital
expenditures. Of this amount, approximately $60 million is committed as of the
end of the quarter. The Company recently announced it had approved funding for
the LNG project being developed by Atlantic LNG Company of Trinidad and Tobago.
The Company has a 10% ownership position in the project. The Company
expects to spend approximately $100 million over the next three years on the
Trinidad project, to upgrade and refurbish its LNG tanker "Gamma" and to
increase vaporization capacity at its Everett, Massachusetts facility. A
portion of the $100 million LNG expenditures will be made in fiscal 1996 and
is included in the $300 million expected to be spent in 1996.
During the quarter, the Company purchased approximately 1,800,000 shares
of common stock under a previously announced 3,000,000 share repurchase
program. This brings the total number of shares purchased from September 8,
1995 through December 31, 1995 under the authorization to approximately
2,400,000.
During the quarter, the Company paid $0.05 per common share, or an aggregate of
$1.8 million, for the redemption of rights issued under a Rights Agreement
adopted in 1986. A new Rights Agreement was adopted in November 1995 and will
expire in November 2005.
The Company's ratio of total debt (including short-term debt net of cash) to
capital increased from 29% at September 30, 1995, to 41% at the end of the
quarter due to increased borrowings and the reduction of the number of shares
of common stock outstanding as a result of the Company's share repurchase
program.
Management expects cash from operations and present financing arrangements,
including the Company's unused line of credit of $250 million, to be
sufficient to meet the Company's cash requirements for the foreseeable future.
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11
CABOT CORPORATION
Management's Discussion and Analysis of
Financial Condition and Results of Operations (Continued)
(Dollars in millions, except per share amounts)
UNAUDITED
Three Months Ended
------------------
12/31/95 12/31/94
Industry Segment Data -------- --------
- ---------------------
Sales:
Specialty Chemicals and Materials $344.0 $349.8
Energy 99.0 78.2
------ ------
Net sales $443.0 $428.0
====== ======
Operating profit:
Specialty Chemicals and Materials $ 71.8 $ 60.4
Energy 8.3 6.3
------ ------
Total operating profit 80.1 66.7
Interest expense (9.4) (10.0)
General corporate/other expenses (5.9) (5.9)
------ ------
Income before income taxes 64.8 50.8
Provision for income taxes (24.0) (18.8)
Equity in net income of affiliated companies 3.7 1.7
Minority interest (1.1) 0.2
------ ------
Net income 43.4 33.9
Dividends on preferred stock (0.9) (0.9)
------ ------
Income applicable to primary common shares $ 42.5 $ 33.0
====== ======
Income per common share:
Primary $ 1.13 $ 0.85
======= =======
Fully diluted $ 1.05 $ 0.80
======= =======
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12
Part II. Other Information
Item 2. Changes in Securities
- -----------------------------
In November 1995, the Company entered into a new Rights Agreement with
The First National Bank of Boston, as Rights Agent, which will expire in 2005.
The rights issued under a previous Rights Agreement, which had been adopted in
1986, were redeemed at a price of $0.05 per share. Rights under the new Rights
Agreement were distributed to persons who were stockholders at the close of
business on November 24, 1995.
Item 6. Exhibits and Reports on Form 8-K
- ----------------------------------------
(a) Exhibits
--------
The exhibit numbers in the following list correspond to the number
assigned to such exhibits in the Exhibit Table of Item 601 of
Regulation S-K.
Exhibit
Number Description
------- -----------
4 Rights Agreement dated as of November 10,
1995, between Cabot Corporation and The First
National Bank of Boston, as Rights Agent
(incorporated herein by reference to Exhibit 1
of Cabot's Registration Statement on Form 8-A,
file reference 1-5667, filed with the
Commission on November 13, 1995).
11 Statement Regarding Computation of Per Share
Earnings, filed herewith.
12 Statement Regarding Computation of Ratio of
Earnings to Fixed Charges, filed herewith.
27 Financial Data Schedule, filed herewith. (Not
included with printed copy of the Form 10-Q.)
(b) Reports on Form 8-K
A Current Report on Form 8-K dated November 10, 1995, was filed
with the Securities and Exchange Commission which described the
distribution of preferred stock purchase rights, as set forth in
a Rights Agreement, dated as of November 10, 1995, between the
Company and The First National Bank of Boston, and the redemption
of preferred stock purchase rights previously issued under a Rights
Agreement adopted in 1986.
-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.
CABOT CORPORATION
Date: February 14, 1996 /s/ Kenyon C. Gilson
------------------------------------------
Kenyon C. Gilson
Vice President and Chief Financial Officer
Date: February 14, 1996 /s/ Paul J. Gormisky
------------------------------------------
Paul J. Gormisky
Vice President and Controller
(Chief Accounting Officer)
- -13-
1
EXHIBIT 11
CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS
For the three month period ended December 31, 1995
(In thousands, except per share amounts)
Primary Fully Diluted
------- -------------
Shares of common stock outstanding at October 1, 1995,
less treasury stock 37,382 37,382
Plus net weighted shares of treasury stock purchased (614) (614)
Plus common stock equivalents:
Effect of convertible preferred stock conversion -- 3,067
Effect of equity incentive awards 789 824
------- -------
Weighted average shares outstanding 37,557 40,659
======= =======
Income applicable to common shares $42,468 $42,468
Dividends on preferred stock -- 883
Preferred stock conversion compensation shortfall -- (516)
------- -------
Earnings applicable to common shares $42,468 $42,835
======= =======
Earnings per common share $ 1.13 $ 1.05
======= =======
-14-
1
EXHIBIT 12
CABOT CORPORATION AND CONSOLIDATED SUBSIDIARIES
STATEMENT REGARDING COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
(Dollars in thousands)
Three Months Years ended September 30
ended --------------------------------------------------------------
December 31, 1995 1995 1994 1993 1992 1991
----------------- ---- ---- ---- ---- ----
Earnings:
Pre-tax income from continuing operations $63,588 $256,342 $118,325 $ 67,900 $116,599 $62,362
Distributed income of affiliated companies 3,465 11,699 5,638 5,988 5,766 4,688
Add fixed charges:
Interest on indebtedness 9,421 35,639 41,668 44,043 41,714 38,661
Portion of rents representative of
the interest factor 1,139 5,515 5,879 4,838 4,933 5,715
------- -------- -------- -------- -------- --------
Income as adjusted $77,613 $309,195 $171,510 $122,769 $169,012 $111,426
Fixed charges:
Interest on indebtedness $ 9,421 $ 35,639 $ 41,668 $ 44,043 $ 41,714 $ 38,661
Capitalized interest -- -- -- -- 3,963 8,745
Portion of rents representative of
the interest factor 1,139 5,515 5,879 4,838 4,933 5,715
------- -------- -------- -------- -------- --------
Total fixed charges $10,560 $ 41,154 $ 47,547 $ 48,881 $ 50,610 $ 53,121
Ratio of earnings to fixed charges 7.35 7.51 3.61 2.51 3.34 2.10
======= ======== ======== ======== ======== ========
-15-
5
1,000
US DOLLARS
3-MOS
SEP-30-1996
OCT-01-1995
DEC-31-1995
1
55,996
0
307,591
5,325
295,037
701,200
1,537,627
766,715
1,727,858
480,653
335,118
67,775
0
75,336
1,114,256
1,727,858
443,031
445,492
305,133
305,133
19,550
0
9,421
64,757
23,960
43,351
0
0
0
43,351
1.13
1.05
