UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act
of 1934
For the period ended June 30, 1996
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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: 0-6612
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RLI Corp.
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(Exact name of registrant as specified in its charter)
ILLINOIS 37-0889946
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
9025 North Lindbergh Drive, Peoria, IL 61615
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(Address of principal executive offices) (Zip Code)
(309) 692-1000
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(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 [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS:
As of August 6, 1996 the number of shares outstanding of the registrant's
Common Stock was 7,936,441.
Page 1 of 13
PART I
Item 1. Financial Statements
RLI Corp. and Subsidiaries
Condensed Consolidated Statement Of Earnings
(Unaudited)
For the Three-Month Period
Ended June 30,
1995 1996
----------- -----------
Net premiums earned $33,226,482 $32,390,263
RLI Vision Corp. revenue 9,011,315 9,152,528
Net investment income 5,265,829 6,091,854
Net realized investment gains (losses) 136,542 ( 36,190)
----------- -----------
47,640,168 47,598,455
----------- -----------
Losses and settlement expenses 16,298,650 16,907,372
Policy acquisition costs 10,168,476 7,505,677
Insurance operating expenses 3,462,627 3,862,271
RLI Vision Corp. operating expenses 8,642,111 8,773,082
Interest expense on debt 843,130 690,570
General corporate expenses 601,931 853,523
----------- -----------
40,016,925 38,592,495
----------- -----------
Earnings before income taxes 7,623,243 9,005,960
Income tax expense 2,143,424 2,625,298
----------- -----------
Net earnings $ 5,479,819 $6,380,662
============ =============
Net earnings per share:
Primary $0.70 $ .80
Fully diluted $0.62 $ .71
Weighted average number of
common shares outstanding
Primary 7,849,434 7,935,776
Fully diluted 9,618,665 9,705,007
Cash dividends declared per common share $0.13 $0.14
The accompanying notes are an integral part of the financial statements.
2
RLI Corp. and Subsidiaries
Condensed Consolidated Statement Of Earnings (Continued)
(Unaudited)
For the Six-Month Period
Ended June 30,
1995 1996
----------- -----------
Net premiums earned $68,789,442 $64,557,241
RLI Vision Corp. revenue 17,743,816 17,975,503
Net investment income 10,665,850 11,819,299
Net realized investment gains 107,151 105,120
----------- -----------
97,306,259 94,457,163
----------- -----------
Losses and settlement expenses 32,350,911 $34,938,024
Policy acquisition costs 23,091,095 15,507,006
Insurance operating expenses 7,050,826 7,198,226
RLI Vision Corp. operating expenses 16,959,644 17,390,988
Interest expense on debt 1,686,274 1,411,914
General corporate expenses 1,295,681 1,588,565
----------- -----------
82,434,431 78,034,723
----------- -----------
Earnings before income taxes 14,871,828 16,422,440
Income tax expense 4,055,078 4,525,881
----------- -----------
Net earnings $10,816,750 $11,896,559
============ =============
Net earnings per share:
Primary $1.38 $1.50
Fully diluted $1.22 $1.32
Weighted average number of
common shares outstanding
Primary 7,849,434 7,921,316
Fully diluted 9,618,665 9,690,547
Cash dividends declared per common share $0.25 $0.27
The accompanying notes are an integral part of the financial statements.
3
RLI Corp. and Subsidiaries
Condensed Consolidated Balance Sheet
(Unaudited)
December 31, June 30,
ASSETS 1995 1996
Investments ------------ -------------
Fixed maturities
Held-to-maturity, at amortized cost $251,637,536 $250,781,087
Available-for-sale, at fair value 45,119,811 44,133,044
Equity securities, at fair value 153,957,535 167,736,699
Short-term investments, at cost which
approximates fair value 23,874,732 14,304,923
----------- -------------
Total investments 474,589,614 476,955,753
Cash 1,196,926 0
Accrued investment income 5,854,731 5,787,879
Premiums and reinsurance balances receivable 36,447,284 67,653,450
Ceded unearned premiums 50,189,740 50,298,581
Reinsurance balances recoverable on unpaid losses 197,337,466 183,376,512
Deferred policy acquisition costs 15,806,911 15,823,056
Property and equipment 13,950,559 14,412,393
Income taxes - current 2,619,811 0
Other assets 16,654,099 13,781,382
----------- ------------
TOTAL ASSETS $814,647,141 $828,089,006
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities:
Unpaid losses and settlement expenses $418,985,960 $409,779,437
Unearned premiums 126,013,957 129,659,343
Reinsurance balances payable 37,744,456 37,297,172
Short-term debt 2,800,000 0
Long-term debt:
Convertible debentures 46,000,000 46,000,000
Income taxes-current 0 448,629
Income taxes-deferred 4,904,394 9,473,171
Other liabilities 19,590,658 19,067,112
----------- ------------
TOTAL LIABILITIES 656,039,425 651,724,864
----------- ------------
Shareholders' Equity:
Common stock (8,453,449 shares issued
and outstanding) 8,453,449 8,453,449
Other shareholders' equity 153,544,590 170,762,227
Less: Treasury shares at cost
(602,567 shares at 12/31/95)
(517,673 shares at 6/30/96) (3,390,323) (2,851,534)
----------- ------------
TOTAL SHAREHOLDERS' EQUITY 158,607,716 176,364,142
----------- ------------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $814,647,141 $828,089,006
============ ============
The accompanying notes are an integral part of the financial statements.
4
RLI Corp. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited)
For the Six-Month Period
Ended June 30,
--------------------------
1995 1996
------------ ------------
Net cash used in operating activities ($ 8,767,202) ($2,717,481)
------------ ------------
Cash Flows from Investing Activities
Investments purchased ( 55,722,553) ( 18,247,840)
Investments sold 0 4,683,628
Investments called or matured 18,872,715 10,200,000
Net decrease in
short-term investments 45,738,452 9,569,858
Net property and equipment purchased ( 786,702) ( 1,896,477)
------------ ------------
Net cash from investing activities 8,101,912 4,309,169
------------ ------------
Cash Flows from Financing Activities
Cash dividends paid ( 1,924,760) ( 2,142,799)
Payments on debt 0 ( 2,800,000)
Change in contributed capital ( 4,010) 1,615,396
Treasury shares reissued 0 538,789
------------ ------------
Net cash used in
financing activities ( 1,928,770) ( 2,788,641)
------------ ------------
Net decrease in cash ( 2,594,060) ( 1,196,926)
------------ ------------
Cash at the beginning of the year 8,185,806 1,196,926
------------ ------------
Cash as of June 30 $ 5,591,746 $ 0
============ ============
The accompanying notes are an integral part of the financial statements.
5
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - The financial information is
prepared in conformity with generally accepted accounting principles and
such principles are applied on a basis consistent with those reflected in
the 1995 annual report filed with the Securities and Exchange Commission.
The financial information included herein has been prepared by management
without audit by independent certified public accountants who do not
express an opinion thereon. The condensed consolidated balance sheet as
of December 31, 1995 has been derived from, and does not include all the
disclosures contained in the audited consolidated financial statements for
the year ended December 31, 1995.
The information furnished includes all adjustments and normal recurring
accrual adjustments which are, in the opinion of management, necessary for
a fair statement of results for the interim periods. Results of
operations for the six month periods ended June 30, 1995 and 1996 are not
necessarily indicative of the results of a full year.
Primary earnings per share are computed using the weighted average number
of shares of common stock outstanding during the period.
Fully diluted earnings per share calculations are based on the weighted
average number of shares of common stock outstanding for the period,
assuming full conversion of all Convertible Debentures into common stock.
Net earnings are adjusted for purposes of this calculation to eliminate
interest and amortization of debt issuance costs on the Convertible
Debentures net of related taxes. When the conversion of Convertible
Debentures increases the earnings per share or reduces the loss per share,
the effect on earnings is antidilutive. Under these circumstances, the
fully diluted net earnings or net loss per share is computed assuming no
conversion of the Convertible Debentures.
The accompanying financial data should be read in conjunction with the
notes to the financial statements contained in the 1995 10-K Annual
Report.
2. SIGNIFICANT DEVELOPMENT - During the second quarter of 1996, the Company
reached a tentative agreement with the California Insurance Department
regarding the settlement of the Company's Proposition 103 liability. The
final assessment has been set at $3.0 million, inclusive of return
premiums and accrued interest. Through 1995, the Company had estimated
and accrued its liability in the amount of $2.5 million. The additional
charge of $500,000 has been reflected in second quarter 1996 earnings.
6
3. INDUSTRY SEGMENT INFORMATION - Selected information by industry segment
for the six months ended June 30, 1995 and 1996 is presented below.
SEGMENT DATA - (in thousands) EARNINGS
(LOSS)
BEFORE
REV. TAXES ASSETS
1995 ------- -------- ------
RLI Insurance Group $ 68,789 $ 6,296 $756,294
RLI Vision Corp. 17,744 784 16,059
Net investment income 10,666 10,666
Net realized investment gains 107 107
General corporate & interest expense - (2,982) 16,508
-------- --------- --------
Consolidated $ 97,306 $ 14,871 $788,861
======== ========= ========
1996
RLI Insurance Group $ 64,557 $ 6,914 $798,448
RLI Vision Corp. 17,976 585 15,383
Net investment income 11,819 11,819
Net realized investment gains 105 105
General corporate & interest expense - (3,001) 14,258
--------- --------- --------
Consolidated $ 94,457 $ 16,422 $828,089
========= ========= ========
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
OVERVIEW
RLI Corp. (the Company) is a holding company that, through its subsidiaries,
underwrites specialty property and casualty insurance and provides a wide
range of services and products to the ophthalmic industry.
The most significant segment is the RLI Insurance Group (the Group), which
provides specialty property and casualty coverages for primarily commercial
risks. This segment accounted for 68% of the Company's total revenue for the
six months ended June 30, 1996.
SIX MONTHS ENDED JUNE 30, 1996, COMPARED TO SIX MONTHS
ENDED JUNE 30, 1995
Consolidated gross sales, which consist of gross premiums written, non-
insurance sales revenue, net investment income and realized investment gains
(losses) totaled $167.6 million for the first six months of 1996, up 1.6% from
the same period in 1995. This increase was due in part to a 1.1% increase in
gross sales of the insurance group, as detailed in the discussion of RLI
Insurance Group that follows. Additionally, net investment income for the
first six months of 1996 increased 10.8%. Sales of RLI Vision Corp., however,
remained virtually flat. Consolidated revenue for the first six months of
1996 decreased $2.8 million, or 2.9%, from the same period in 1995. Net
7
premiums earned in the first six months of 1996 were down 6.2% compared to the
first six months of 1995 as property writings were down most of last year.
The net after-tax earnings for the first six months of 1996 totaled $11.9
million, $1.50 per share, compared to $10.8 million, $1.38 per share, for the
same period in 1995. The increase in net earnings is attributable to
continued strong underwriting results and increased net investment income
through the first six months of 1996.
RLI INSURANCE GROUP
Gross premiums written for the first six months of 1996 totaled $137.8
million, compared to $136.3 million reported for the first six months of 1995.
Property premiums increased to $70.5 million for the first half of 1996
compared to $61.3 million for the first half of 1995. This increase was
offset by declines in the casualty lines due to discontinuation of the
Aviation business as well as declines on other products such as Employers
Excess Indemnity and General Liability related to unfavorable pricing and
market conditions. Property writings in the first half of 1995 were lower
partly due to the Group's efforts towards reducing catastrophe exposure and
re-underwriting the fire book of business.
Net premiums written for the first six months of 1996 increased $4.8 million
or 7.7% from the same period in 1995. Of this increase, $4.7 million was
related to property business where a portfolio transfer of reinsurance
resulted in premiums being ceded on an earned rather than written basis.
Net premiums earned of $64.6 million in the first half of 1996 represent a
$4.2 million or 6.2% decrease from the same period in 1995. This decrease is
primarily the result of the $2.7 million decline in property premiums earned
as a result of reduced writings throughout most of 1995. Additionally, earned
premiums on casualty business declined $1.5 million for the first half of 1996
compared to 1995. Modest premium increases realized on the Company's General
Liability, Personal Umbrella, Commercial Umbrella, and Surety books were
offset by declines on Employer's Excess Indemnification and Directors and
Officers Liability, as well as the discontinuation of some smaller and
unprofitable lines of business.
The Group's pretax earnings totaled $6.9 million for the first six months of
1996 compared to pretax earnings of $6.3 million for the same period in 1995.
Earnings for the first half of 1996 included losses of $2.2 million from
winter storms on the east coast and $500,000 for Proposition 103 settlement.
Earnings for the first half of 1995 included losses of $1.9 million from
flooding in California and $3.8 million from Northridge Earthquake
development.
The GAAP combined ratio through the first six months of 1996 was 89.3 compared
to 90.8 for the same period in 1995. The loss ratio increased from 47.0 for
the first half of 1995 to 54.1 in the first half of 1996. This change was
mainly the result of increases to the overall reserving levels on the
Company's General Liability book due to loss reserve study changes. The loss
ratio increase was offset by a decline in the expense ratio from 43.8 for the
first half of 1995 to 35.2 in the first half of 1996. This was largely the
result of accruing contingent ceding commissions from reinsurers based on
8
favorable loss results on the Group's California Property Programs.
RLI VISION CORP.
RLI Vision Corp., the Company's wholly-owned subsidiary that distributes a
variety of vision care products reported revenue of $18.0 million for the six
months ended June 30, up slightly from 1995. Ophthalmic product revenue grew
by $503,000 or 3.7%. This included an increase in contact lens and other
distributed products of $465,000 or 3.9% and an increase of $80,000 or 12% in
the manufacturing of RGP lenses. In addition, Vision's practice management
software, RLISYS, generated an increase of $171,000 or 21.8%. These increases
were partially offset by a decrease in third party administration products of
$441,000 or 13% from 1995, reflecting the continued downward trend of these
services throughout the ophthalmic industry.
RLI Vision's pre-tax earnings for the six months ended June 30 decreased by
$199,000 or 25.4%. Gross margin decreased by $336,000 or 4.3% from 1995, as
the shift towards the lower margin distributed products continues. Partially
offsetting the decrease in gross margin were operating expense reductions of
$335,000 or 4.7% not including restructuring charges of $160,000 for the year
which will not be re-occurring. In particular, cost reductions were realized
in salaries and commissions, postage, and collection/bad debt expenses. These
savings were partially offset by increased printing costs.
INVESTMENT INCOME
The Company's investment portfolio generated net dividends and interest income
of $11.8 million during the first six months of 1996, an increase of 10.8%
over that reported for the same period in 1995. This increase is the result
of a higher invested asset base from the prior year coupled with a decline in
investment expenses during 1996.
Invested assets at June 30, 1996 increased by $2.4 million from December 31,
1995. Cash and other short-term investments declined by $10.8 million from
December 31, 1995 due primarily to the funding of reinsurance obligations and
other first half 1996 operating needs. In addition, the Company's investment
gains remained relatively flat, recognizing $105,000 in investment gains for
the first six months of 1996 compared to $107,000 for the same period in 1995.
The Company's fixed income portfolio consisted entirely of securities rated A
or better and 99% were rated AA or better. The year-to-date yields on the
Company's fixed income investments for the six month periods ended June 30,
1995 and 1996 are as follows:
1995 1996
---- ----
Taxable 6.88% 6.94%
Non-taxable 5.05% 5.00%
Yields on taxable securities increased through the first six months of 1996
due to the maturity of lower yielding securities from the portfolio. Yields
on the tax-exempt portfolio are lower due to securities purchased in a lower
9
interest rate environment during the second half of 1995.
The Company's available-for-sale portfolio of debt and equity securities had
net unrealized gains before tax of $9.0 million through the first six months
of 1996 compared to net unrealized gains before tax of $16.8 million for the
same period in 1995. Lower interest rates and a strong rally in the stock
market during the first six months of 1995 caused the Company to record
significant unrealized gains on its debt and equity holdings. During the
first six months of 1996, the Company's equity securities continued their
strong performance while debt securities were adversely impacted by higher
interest rates. Unrealized appreciation on securities, net of tax is
reflected in a separate component of shareholders' equity. The Company's net
unrealized gain before tax was $61.5 million and $52.5 million at June 30,
1996 and December 31, 1995, respectively.
Interest expense on debt obligations decreased to $1.4 million for the first
six months of 1996, a $300,000 drop from the same period in 1995. This
reduction is due to the December 1, 1995 repayment of $5.4 million on the City
of Peoria industrial development bonds, a part of which was refinanced through
short-term borrowings of $2.8 million. This short-term debt was repaid during
the first quarter of 1996.
INCOME TAXES
The Company's effective tax rate for the first six months of 1996 was 28%
compared to 27% for the same period in 1995. Income tax expense attributable
to income from operations differed from the amounts computed by applying the
U.S. federal tax rate of 35% to pretax income for the first six months of 1995
and 1996 as a result of the following:
1995 1996
Amount % Amount %
------ --- ------ ---
Provision for income taxes at
the statutory rate of 35% $ 5,205,140 35% $ 5,747,854 35%
Increase (reduction) in taxes
resulting from:
Tax exempt interest income ( 661,897) ( 4%) ( 750,458) ( 4%)
Dividends received deduction ( 563,848) ( 4%) ( 592,993) ( 4%)
Dividends paid deduction ( 132,255) ( 1%) ( 128,844) ( 1%)
Other items, net 207,939 1% 250,322 2%
---------- ---- ---------- ----
Total tax expense $ 4,055,079 27% $ 4,525,881 28%
LIQUIDITY AND CAPITAL RESOURCES
Historically, the primary sources of the Company's liquidity have been funds
generated from insurance premiums (operating activities) and investment income
and maturing investments (investing activities). In addition, the Company has
occasionally received proceeds from financing activities such as the sale of
common stock to the employee stock ownership plan, sale of convertible
debentures, and small, short-term borrowings.
10
At June 30, 1996 the Company had short-term investments, cash and other
investments maturing within one year, of approximately $35.4 million and
additional investments of $117.6 million maturing within five years. The
Company maintains two major sources of credit from two financial institutions:
one $10.0 million secured line of credit and one $30.0 million line of credit.
Both lines are unused at June 30, 1996.
Management believes that cash generated by operations, cash generated by
investments and cash available from financing activities will provide
sufficient sources of liquidity to meet its anticipated needs over the next
twelve to twenty-four months, including settlement of accrued but unpaid costs
related to the Northridge Earthquake.
THREE MONTHS ENDED JUNE 30, 1996, COMPARED TO THREE MONTHS ENDED JUNE 30, 1995
Consolidated gross sales increased $1.4 million, or 1.6%, to $89.5 million for
the second quarter of 1996, compared to the same period in 1995. Gross sales
of the insurance group remained relatively flat at $74.4 million, a 1.1%
increase compared to the same period in 1995. During this same period, net
investment income improved 15.7% over 1995 levels. Consolidated revenue for
the second quarter 1996 decreased $41,000 from the same period in 1995. Net
earnings for the second quarter of 1996 totaled $6.4 million, $.80 per share,
compared to net earnings of $5.5 million, $.70 per share, for the same period
in 1995. This increase is primarily the result of strong property
underwriting profits and increased investment income.
RLI INSURANCE GROUP
Gross premiums written in the second quarter of 1996 totaled $74.4 million, a
1.1% increase from the second quarter of 1995. Property premiums advanced to
$39.8 million for the second quarter of 1996 compared to $37.7 million for the
same period in 1995. This increase was partially offset by declines in the
casualty lines due to discontinuation of the Aviation business, as well as
declines on other products such Employer's Excess Indemnity, and General
Liability due to unfavorable pricing and market conditions. Net premiums
written for the second quarter of 1996 declined 7.7% from 1995 levels. This
decline is primarily attributable to the restructuring of the Company's
reinsurance program in 1996. Increased reinsurance coverage purchased on the
Company's property book has resulted in additional cessions to the Company's
Difference-In-Condition and other property surplus treaties.
Premiums earned of $32.4 million for the quarter represent a 2.5% decrease
from the second quarter of 1995. Earned premiums on the property book
decreased 1.9% over 1995 levels. Increased writings during the first half of
1996 began to offset declines experienced as a result of lower property
writings throughout 1995. Additionally, casualty premiums declined 2.9% due
to the discontinuation of some smaller unprofitable lines and continued
selective writing of the existing book.
The group's pre-tax earnings were $4.1 million for the second quarter of 1996
compared to pre-tax earnings of $3.3 million for the same period in 1995. The
GAAP combined ratio decreased to 87.3 from 90.1 in the second quarter of 1995.
11
The loss and settlement expense component of the combined ratio increased to
52.2 from 49.1, as a result of reserve strengthening on the Company's casualty
book. The operating expense component of the combined ratio, however,
decreased to 35.1 from 41.0, primarily due to the accruing of contingent
ceding commissions from reinsurers based on favorable loss results on the
group's California property programs.
RLI VISION CORP.
For the second quarter 1996, RLI Vision posted revenue of $9.2 million, which
was up 1.6% from second quarter 1995. Revenues from ophthalmic products
increased $254,000 or 3.6%. Software license fees increased by $50,000 or 15%
over 1995. In addition, revenues for the Vision Care Advantage (VCA) managed
care product, increased by $79,000 from 1995. Revenues from third party
administration products, including Total Lens Care (TLC) and Clear Advantage
decreased $270,000 or 17%.
RLI Vision's pre-tax earnings for the second quarter 1996 increased $13,000 or
3.5% from 1995. This increase was primarily due to continued operating cost
reductions which resulted in a decrease in operating expenses of $74,000 or
2.1% from 1995. Total gross margin decreased by $60,000 or 1.5% from 1995 due
to a product mix shift towards the lower margin distributed products.
INVESTMENT INCOME
The Company's investment portfolio generated net dividends and interest income
of $6.1 million during the second quarter of 1996, an increase of 15.7% over
that reported for the same period in 1995. This increase is primarily
attributable to the higher invested asset base from the prior year, as
previously discussed. The Company also recognized realized losses of $36,000
during the second quarter of 1996 compared to realized gains of $136,000 in
the second quarter of 1995.
Interest expense on debt obligations totaled $641,000 for the second quarter
of 1996 compared to $843,000 for the same period in 1995. This reduction is
due to the December 1, 1995 principal repayment of $5.4 million on the City of
Peoria industrial development bonds.
INCOME TAXES
The Company's effective tax rate for the second quarter 1996 was 29% compared
to 28% for the second quarter 1995. The Company's effective tax rate is
generally dependent upon the level of non-taxable investment earnings compared
to total pre-tax earnings. Non-taxable investment earnings as a percentage of
total pre-tax earnings for the second quarter of 1996 decreased 1% from the
same period in 1995. As a result of this decrease, the effective tax rate for
the second quarter of 1996 has increased slightly.
12
PART II - OTHER INFORMATION
Item 1. Legal Proceedings - Not Applicable
Item 2. Change in Securities - Not Applicable
Item 3. Defaults Upon Senior Securities - Not Applicable
Item 4. Submission of Matters to a Vote of Security Holders - Not Applicable
Item 5. Other Information - Not Applicable
Item 6. Exhibits and Reports on Form 8-K
(a) Not Applicable
(b) The Company did not file any reports on Form 8-K during the six
months ended June 30, 1996.
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.
RLI Corp.
/s/Joseph E. Dondanville
Joseph E. Dondanville
Vice President, Chief Financial Officer
(Duly authorized and Principal
Financial and Accounting Officer)
Date: August 6, 1996
13