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 MARCH 31, 2005 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: 0-1375 FARMER BROS. CO. (exact name of registrant as specified in its charter) Delaware 95-0725980 (State of Incorporation) (I.R.S. Employer Identification No.) 20333 South Normandie Avenue, Torrance, California 90502 (address of principal executive offices) (Zip Code) (310)787-5200 (Registrant's telephone number, including area code) 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 [ ] Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act). YES [X] NO [ ] On May 6, 2005 Registrant had 16,075,080 shares outstanding of its common stock, par value $1.00 per share, which is the Registrant's only class of common stock. PART I. FINANCIAL INFORMATION Item 1. Financial Statements (Dollars in thousands, except share and per share data) FARMER BROS. CO. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the three months For the nine months ended March 31, ended March 31, 2005 2004 2005 2004 Net sales $50,271 $49,069 $148,199 $146,245 Cost of goods sold 20,928 18,488 59,319 53,459 Gross profit 29,343 30,581 88,880 92,786 Selling expense 23,943 22,735 68,492 68,019 General and administrative expense 7,567 7,103 20,854 19,843 Operating expenses 31,510 29,838 89,346 87,862 (Loss) income from operations (2,167) 743 ( 466) 4,924 Other expense and income: Dividend income 850 844 2,584 2,527 Interest income 738 935 1,799 2,156 Other, net (expense) income (3,019) 4,980 (11,241) 6,149 (1,431) 6,759 (6,858) 10,832 (Loss) income before taxes (3,598) 7,502 (7,324) 15,756 Income taxes (benefit) (4,454) 1,899 (5,609) 5,077 Net income(loss) $ 856 $5,603 ($1,715) $10,679 Net income (loss) per common share $0.06 $0.42 ($0.13) $0.66 Weighted average shares outstanding 13,687,840 13,457,300 13,621,390 16,266,410 Dividends declared per share $0.10 $0.095 $0.30 $0.29 The accompanying notes are an integral part of these financial statements. FARMER BROS. CO. CONSOLIDATED BALANCE SHEETS March 31, June 30, 2005 2004 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 6,420 $21,807 Short term investments 181,041 176,903 Accounts and notes receivable, net 15,465 14,565 Inventories 37,691 35,579 Income tax receivable 6,137 408 Deferred income taxes 2,052 775 Prepaid expenses 4,296 2,683 Total current assets $253,102 $252,720 Property, plant and equipment, net $41,856 $42,300 Notes receivable 143 143 Other assets 21,293 21,609 Deferred income taxes 1,806 1,099 Total assets $318,200 $317,871 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $11,245 $9,589 Accrued payroll expenses 5,232 6,999 Other 4,576 4,601 Total current liabilities $21,053 $21,189 Accrued post-retirement benefits $28,581 $26,984 Total liabilities $49,634 $48,173 Commitments and contingencies Stockholders' equity: Common stock, $1.00 par value, authorized 20,000,000 shares; 16,075,080 shares issued and outstanding $16,075 $16,075 Additional paid-in capital 32,419 32,248 Retained earnings 277,874 283,654 Unearned ESOP shares (57,065) (61,542) Less accumulated comprehensive loss (737) (737) Total stockholders' equity $268,566 $269,698 Total liabilities and stockholders' equity $318,200 $317,871 The accompanying notes are an integral part of these financial statements. FARMER BROS. CO. CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the nine months ended March 31, 2005 2004 Cash flows from operating activities: Net (loss) income ($1,715) $10,679 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation 6,221 5,302 Deferred income taxes (1,984) - Loss on sales of assets (19) (52) ESOP compensation expense 4,648 3,835 Net (loss) on investments (11,786) (631) Change in assets and liabilities: Short term investments 7,649 (2,738) Accounts and notes receivable ( 935) (3,846) Inventories (2,112) 722 Income tax receivable (5,729) 1,978 Prepaid expenses and other assets (1,298) 883 Accounts payable 1,656 2,278 Accrued payroll expenses and other (1,792) 3,479 Accrued post-retirement benefits 1,597 1,684 Other long term liabilities - (5,570) Total adjustments (3,884) 7,324 Net cash (used in) provided by operating activities ($5,599) $18,003 Cash flows from investing activities: Purchases of property, plant and equipment (5,841) (5,806) Proceeds from sales of property, plant and equipment 83 86 Notes repaid 35 34 Net cash (used in) investing activities (5,723) (5,686) Cash flows from financing activities: Dividends paid (4,065) (4,354) ESOP contributions - (32,412) Proceeds from sale of short-term investments - 111,161 Purchase of capital stock - (111,161) Issue capital stock - 31,236 Net cash (used in) financing activities (4,065) (5,530) Net(decrease) increase in cash and cash equivalents (15,387) 6,787 Cash and cash equivalents at beginning of period 21,807 18,986 Cash and cash equivalents at end of period $ 6,420 $25,773 The accompanying notes are an integral part of these financial statements. Notes to Consolidated Financial Statements (Unaudited) Note 1. Unaudited Consolidated Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete consolidated financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the interim financial data have been included. Operating results for the three and nine month periods ended March 31, 2005 are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2005. For further information, refer to the consolidated financial statements and footnotes thereto included in the Farmer Bros. Co. annual report on Form 10-K for the fiscal year ended June 30, 2004. Share and per share amounts included in the accompanying consolidated financial statements and in the notes to the consolidated financial statements have been retroactively adjusted for all periods presented to reflect a ten-for-one stock split in May 2004. Note 2. Investments Investments are as follows (in thousands): March 31, June 30, 2005 2004 Trading securities at fair value U.S. Treasury obligations $119,274 $119,528 Preferred stock 60,921 56,037 Futures, options and other derivative investments 846 1,338 $181,041 $176,903 Note 3. Inventories (in thousands) March 31, 2005 Processed Unprocessed Total Coffee $ 3,071 $13,584 $16,655 Allied products 12,309 3,793 16,102 Coffee brewing equipment 1,744 3,190 4,934 $17,124 $20,567 $37,691 June 30, 2004 Processed Unprocessed Total Coffee $ 3,034 $10,736 $13,770 Allied products 11,800 3,665 15,465 Coffee brewing equipment 2,341 4,003 6,344 $17,175 $18,404 $35,579 Interim LIFO Calculations An actual valuation of inventory under the LIFO method is made only at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations must necessarily be based on management's estimates of expected year-end inventory levels and costs. Because these are subject to many forces beyond management's control, interim results are subject to the final year-end LIFO inventory valuation. Note 4. Pension Plans The Company has a contributory defined benefit pension plan for all employees not covered under a collective bargaining agreement and a non-contributory defined benefit plan for certain hourly employees covered under a collective bargaining agreement. The net periodic benefit costs for the defined benefit plans were as follows: Components of Net Periodic Benefit Cost (in thousands) Three months ended March 31, 2005 2004 Service cost $529 $594 Interest cost 1,071 988 Expected return on plan assets (1,559) (1,362) Amortization of transition obligation (asset) 0 0 Amortization of prior service cost 46 62 Amortization of net loss 18 336 Net periodic benefit cost $105 $618 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. Liquidity and Capital Resources There have been no material changes in the Company's liquidity or capital resources since the fiscal year ended June 30, 2004. The Company continues to maintain a strong working capital position. All present and future liquidity needs are expected to be met by internal sources. The Company does not expect to rely on banks or other third parties for its working capital and other liquidity needs. (in thousands) March 31, June 30, 2005 2004 Current assets $253,102 $252,720 Current liabilities 21,053 21,189 Working capital $232,049 $231,531 Total assets $318,200 $317,871 The company has broken ground on a new warehouse in Bakersfield, California, and has resumed construction of a warehouse in Chico, California, that had been delayed this winter by wet weather. Each of these warehouses will replace existing warehouses in these locations and are expected to provide much needed space in these service areas. Additionally, the Company has entered into an agreement to acquire a warehouse in Oakland, California, to meet the needs of our growing Northern California service area by providing additional space and is expected to improve operating efficiencies. The total cost for the Oakland facility is not expected to exceed $3 million. Otherwise, there have been no changes in the needs or commitments described in the Company's annual report on Form 10-K for the fiscal year ended June 30, 2004. Results of Operations We believe the Company's continued emphasis on sales, focused sales training, new product development, new promotional materials and revised pricing is beginning to have a positive effect on net sales. Net sales increased 2% to $50,271,000 for the quarter ended March 31, 2005 as compared to $49,069,000 for the same quarter of fiscal 2004. Net sales for the nine months ended March 31, 2005 increased 1% to $148,199,000 as compared to $146,245,000 in the same period of fiscal 2004. The third quarter sales increase largely reflects roast coffee price increases in late December 2004, and a modest increase in sales of non-coffee products. On March 28, 2005, the Company increased roast coffee prices in line with the market. The effect of this increase will be reflected in operating results for the fourth quarter of fiscal 2005. Gross profit decreased 4% to $29,343,000 in the quarter ended March 31, 2005 as compared to $30,581,000 in the same quarter of fiscal 2004. Gross profit for the nine months ended March 31, 2005 decreased 4% to $88,880,000 as compared to $92,786,000 during the first nine months of fiscal 2004. This decrease primarily reflects a sustained increase in green coffee prices since November 2004, and the lagging impact of the Company's increase in roast coffee sales prices. We expect the effect of the Company's most recent price increases will be observed in the fourth quarter of fiscal 2005. There is no way to predict when or if the Company will return to its previous profit margins or what the impact of higher prices will be on demand for the Company's products. Operating expenses, consisting of selling and general and administrative expenses, increased 6% in the third quarter of fiscal 2005 to $31,510,000 as compared to $29,838,000 in the same quarter of fiscal 2004. Fiscal year-to- date operating expenses increased 2% to $89,346,000 for fiscal 2005 as compared to $87,862,000 in fiscal 2004. This increase in operating expenses for the nine months ended March 31, 2005 was primarily the result of the following differences (in thousands): Nine month period ended March 31, 2005 2004 IT software depreciation $ 2,339 $ 1,051 Consulting 2,539 3,020 Gas, oil and grease 4,091 3,113 ESOP 5,326 4,320 Post retirement benefit costs 3,237 4,765 $17,532 $16,269 Consulting costs associated with the new sales system continue and are not reflected above. These costs will continue to be capitalized for the balance of fiscal 2005. We expect the new sales system to go live in the early summer. Consulting costs during the first nine months of fiscal 2005 include $307,000 incurred in the third quarter of fiscal 2005 associated with the implementation of Section 404 of the Sarbanes-Oxley Act. We anticipate total consulting costs associated with this project, divided between fiscal 2004 and 2005, will exceed $1,000,000. The increased ESOP expense reflects the increased number of shares acquired by the ESOP during fiscal 2004. Post retirement benefit costs result from actuarially derived pension and retiree medical costs. As a result of the above factors, loss from operations in third quarter of fiscal 2005 was ($2,167,000) as compared to income of $743,000 in the same quarter of fiscal 2004. Similarly, loss from operations for fiscal year-to- date 2005 was ($466,000) as compared to income of $4,924,000 in the same period of fiscal 2004. Other (expense) in the third quarter of fiscal 2005 was ($1,431,000) as compared to income of $6,759,000 in the same quarter of fiscal 2004, and other (expense) for the first nine months of fiscal 2005 was a loss of ($6,858,000) as compared to income of $10,832,000 for the comparable period in fiscal 2004. This is primarily the result of higher green coffee prices during the second and third quarters of fiscal 2005. Other, net (expense) in the third quarter of fiscal 2005 was a loss of ($3,019,000) as compared to income of $4,980,000 in the same quarter of fiscal 2004. Higher green coffee prices during the third quarter of fiscal 2005 resulted in a decrease in the value of green coffee futures and options used by the Company to hedge against a decline in commodity prices. Other, net (expense) income during the third quarter of fiscal 2005 consisted of net realized and unrealized coffee trading losses of ($3,329,000), offset by net gains of $63,000 on other investments. For the first nine months of fiscal 2005, Other, net (expense) was ($11,241,000), as compared to Other, net income of $6,149,000 for the same period of fiscal 2004. Higher green coffee prices during the second and third quarters of fiscal 2005 resulted in a decrease in the value of green coffee futures and options used by the Company to hedge against a decline in commodity prices. Other, net (expense) income during the first nine months of fiscal 2005 consisted of net realized and unrealized coffee trading losses of ($12,992,000), offset by net gains on other investments. The net realized and unrealized losses during the nine month period ended March 31, 2005 consisted of the following (in thousands): Nine month period ended March 31, 2005 Realized coffee gains $3,616 Realized coffee losses ($16,862) Unrealized coffee gains 254 Totals ($12,992) The Company reduced its tax reserve during the third quarter of fiscal 2005 resulting from a favorable determination from a state tax audit which required the reduction of a previously established tax reserve. The reduction of this tax reserve and the recognition of a tax benefit for net losses incurred for the same quarter and the first nine months of fiscal 2005 resulted in a change in the Company's effective tax rate to (76.5%) from 32.2% for the first nine months of fiscal 2005 and 2004, respectively. As the result of the above factors, net income in the third quarter of fiscal 2005 was $856,000, or $0.06 per share, as compared to $5,603,000, or $0.42 per share, in the same quarter of fiscal 2004. Net loss for the first nine months of fiscal 2005 was ($1,715,000), or ($0.13) per share, as compared to net income of $10,679,000, or $0.66 per share, in the first nine months of fiscal 2004. Quarterly Summary of Results (in thousands, except per share data): Quarter ended 3/31/04 6/30/04 9/30/04 12/31/04 3/31/05 Net sales $49,069 $47,344 $46,708 $51,220 $50,271 Gross profit $30,581 $29,398 $29,253 $30,298 $29,343 Income (loss) from operations $743 ($1,161) $1,002 $699 ($2,167) Net income (loss) $5,603 $2,008 $1,497 ($4,068) $856 Net income (loss) per common share $0.42 $0.11 $0.11 ($0.30) $0.06 Forward-Looking Statements Certain statements contained in this quarterly report on Form 10-Q regarding the risks, circumstances and financial trends that may affect our future operating results, financial position and cash flows are not based on historical fact and are forward-looking statements within the meaning of federal securities laws and regulations. These statements are based on management's current expectations, assumptions, estimates and observations of future events and include any statements that do not directly relate to any historical or current fact. These forward-looking statements can be identified by the use of words like "anticipates," "feels," "estimates," "projects," "expects," "plans," "believes," "intends," "will," "assumes" and other words of similar meaning. Owing to the uncertainties inherent in forward-looking statements, actual results could differ materially from those set forth in forward-looking statements. We intend these forward-looking statements to speak only at the time of this report and do not undertake to update or revise these statements as more information becomes available except as required under federal securities laws and the rules and regulations of the SEC. Factors that could cause actual results to differ materially from those in forward-looking statements include, but are not limited to, fluctuations in availability and cost of green coffee, competition, organizational changes, the impact of a weaker economy, business conditions in the coffee industry and food industry in general, the Company's continued success in attracting new customers, variances from budgeted sales mix and growth rates, and weather and special or unusual events, as well as other risks described in this report and other factors described from time to time in the Company's filings with the SEC. Item 3. Quantitative and Qualitative Disclosure About Market Risk. Financial Markets We are exposed to market value risk arising from changes in interest rates on our securities portfolio. Our portfolio of investment grade money market instruments includes discount commercial paper, medium term notes, federal agency issues and U.S. Treasury securities. As of March 31, 2005 over 50% of these funds were invested in instruments with maturities shorter than 90 days. This portfolio's interest rate risk is not hedged and its average maturity is approximately 90 days. A 100 basis point increase in the general level of interest rates would result in a change in the market value of the portfolio of approximately $1,150,000. Our portfolio of preferred securities includes investments in derivatives that provide a natural economic hedge of interest rate risk. We review the interest rate sensitivity of these securities and (a) enter into "short positions" in futures contracts on U.S. Treasury securities or (b) hold put options on such futures contracts in order to reduce the impact of certain interest rate changes on such preferred stocks. Specifically, we attempt to manage the risk arising from changes in the general level of interest rates. We do not transact in futures contracts or put options for speculative purposes. The following table demonstrates the impact of varying interest rate changes based on the preferred stock holdings, futures and options positions, and market yield and price relationships at March 31, 2005. This table is predicated on an instantaneous change in the general level of interest rates and assumes predictable relationships between the prices of preferred securities holdings, the yields on U.S. Treasury securities and related futures and options. Interest Rate Changes (In thousands) Market Value at March 31, 2005 Change in Market Preferred Futures & Total Value of Total Stock Options Portfolio Portfolio - -150 basis points ("b.p.") $66,516 $0 $66,516 $4,926 - -100 b.p. 65,190 1 65,190 3,600 Unchanged 60,904 687 61,590 0 +100 b.p. 55,836 5,081 60,917 ( 674) +150 b.p. 53,246 7,886 61,132 ( 458) The number and type of futures and options contracts entered into depends on, among other items, the specific maturity and issuer redemption provisions for each preferred stock held, the slope of the Treasury yield curve, the expected volatility of Treasury yields, and the costs of using futures and/or options. Commodity Price Changes We are exposed to commodity price risk arising from changes in the market price of green coffee. We price our inventory on the LIFO basis. In the normal course of business, we hold a large green coffee inventory and enter into forward commodity purchase agreements with suppliers. We are subject to price risk resulting from the volatility of green coffee prices. Volatile price increases cannot, because of competition and market conditions, always be passed on to our customers. The Company holds a mix of futures contracts and options to help hedge against volatile green coffee price decreases. Gains and losses on these derivative instruments are realized immediately in Other, net (expense) income. The following table demonstrates the impact of changes in the price of green coffee on inventory and green coffee futures and options at March 31, 2005. It assumes an immediate change in the price of green coffee, and the valuations of coffee index futures and options and relevant forward commodity purchase agreements at March 31, 2005 (in thousands): Market Value of Coffee Price Coffee Futures Change in Market Value Change Inventory & Options Totals Derivatives Inventory -20% $13,300 $ 569 $13,869 $ 610 ($3,355) unchanged 16,655 124) 16,779 20% 20,000 ( 41) 19,959 ( 165) 3,345 At March 31, 2005 the derivatives consisted mainly of commodity purchase contracts and options with maturities shorter than four months. Item 4 Controls & Procedures As of the end of the period covered by this report, the Chief Executive Officer and Chief Financial Officer evaluated the Company's disclosure controls and procedures pursuant to Exchange Act Rule 13a-14 and 15d-14. They have concluded that the Company's disclosure controls and procedures are effective in ensuring that all material information required to be filed in this quarterly report has been made known to them in a timely fashion. In addition, there have been no significant changes in the Company's internal controls or in other factors that could significantly affect the Company's internal control over financial reporting. PART II OTHER INFORMATION Item 2. Changes in Securities and Use of Proceeds. Effective as of March 17, 2005, our Board of Directors approved a stockholder rights plan (the "Rights Plan"), pursuant to which the Company entered into a Rights Agreement dated March 17, 2005 (the "Rights Agreement") with Wells Fargo Bank, N.A., as Rights Agent, and the Board declared a dividend of one preferred share purchase right (a "Right") for each outstanding share of the Company's Common Stock, $1.00 par value per share (the "Common Stock"), to stockholders of record at the close of business on March 28, 2005. Each Right, when exercisable, will entitle the registered holder to purchase from the Company one one-hundredth of a share of Series A Junior Participating Preferred Stock, $1.00 par value per share, at a purchase price of $112.50, subject to adjustment. The description and terms of the Rights are set forth in the Rights Plan. Initially, ownership of the Rights will be evidenced by the certificates representing our Common Stock then outstanding, and no separate Rights Certificates, as defined in the Rights Plan, will be distributed. The Rights are not exercisable until the distribution date, as described in the Rights Agreement, and will expire on March 28, 2015, unless they are earlier redeemed, exchanged or terminated as provided in the Rights Plan. Item 6. Exhibits and reports on Form 8-K. (a) Exhibits. See Exhibit Index. (b) Reports on Form 8-K. A Form 8-K dated January 9, 2005 and filed with the Commission on January 10, 2005 announcing the appointment of Guenter W. Berger as Interim Chief Executive Officer after the sudden death of Chairman and CEO Roy E. Farmer. A Form 8-K dated and filed with the Commission on January 14, 2005, announcing the appointment of Carol Farmer Waite to the Company's Board of Directors, filling a seat vacated by the death of her brother Roy E. Farmer on January 7, 2005. A Form 8-K dated March 17, 2005 and filed with the Commission on March 18, 2005 announcing the approval of a shareholder rights plan by the Board of Directors and summarizing the terms of such rights plan. Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. FARMER BROS. CO. /s/ Guenter W. Berger Guenter W. Berger, Vice President, Interim Chief Executive Officer and Director(principal executive officer) Date: May 6, 2005 /s/ John E. Simmons John E. Simmons, Treasurer and Chief Financial Officer (principal financial and accounting officer) Date: May 6, 2005 EXHIBIT INDEX 3.1 Certificate of Incorporation (filed as an exhibit to the Form 10-Q for the quarter ended March 31, 2004 and incorporated herein by reference). 3.2 By-laws (filed as an exhibit to the Form 10-Q for the quarter ended March 31, 2004 and incorporated herein by reference). 3.3 Certificate of Designations of Series A Junior Participating Preferred Stock (filed as Exhibit 3.1 to the Company's Current Report on Form 8-K dated March 17, 2005 and incorporated herein by reference). 4.1 Rights Agreement dated March 17, 2005 by and between Farmer Bros. Co. and Wells Fargo Bank, N.A., as Rights Agent (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K dated March 17, 2005 and incorporated herein by reference). 10.1 The Farmer Bros. Co. Pension Plan for Salaried Employees (filed as an exhibit to the Form 10-K for the year ended June 30, 2002 and incorporated herein by reference). 10.2 The Farmer Bros. Co. Incentive Compensation Plan (filed as an exhibit to the Form 10-K for the year ended June 30, 2002 and incorporated herein by reference). 10.3 The Farmer Bros. Co. Employee Stock Ownership Plan (filed as an exhibit to the Form 10-K for the year ended June 30, 2002 and incorporated herein by reference). 10.4 Farmer Bros. Co. Employee Stock Ownership Plan Amendment 2 (filed as an exhibit to the Form 10-Q for the quarter ended December 31, 2003 and incorporated herein by reference). 10.5 Farmer Bros. Co. Employee Stock Ownership Plan Amendment 3 (filed as an exhibit to the Form 10-Q for the quarter ended December 31, 2003 and incorporated herein by reference). 10.6 Loan Agreement dated July 21, 2003 between the Company and Wells Fargo Bank, Trustee of the Farmer Bros Co. Employee Stock Ownership Plan (filed as an exhibit to the Form 10-Q for the quarter ended December 31, 2003 and incorporated herein by reference). 10.7 On January 28, 2005 the Company entered into Change in Control Severance Agreements with each of the following officers: Guenter Berger, Michael J. King and John E. Simmons. The form of these agreements is filed herewith. 31.1	Principal Executive Officer Certification Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as Adopted Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002.(filed herewith) 31.2	Principal Financial Officer Certification Pursuant to Securities Exchange Act Rules 13a-14 and 15d-14 as Adopted Pursuant to Section 302 of the Sarbanes- Oxley Act of 2002.(filed herewith) 32.1	Principal Executive Officer Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith) 32.2	Principal Financial Officer Certification Pursuant to 18 U.S.C. Section 1350 as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (furnished herewith)