Stacey Yonkus
Director, Investor Relations
(212) 885-2512
investor@asburyauto.com
Reporters May Contact:
David Shein
RFBinder Partners
(212) 994-7514
David.Shein@RFBinder.com
Asbury Automotive Group Reports
Second Quarter Financial Results
-- Income from Continuing Operations Increased 9% --
-- Same-Store Retail Revenue Rose 9%;
Same-Store Retail Gross Profit Increased 7% --
New York, NY, July 28, 2005 - Asbury Automotive Group, Inc. (NYSE: ABG), one of
the largest automotive retail and service companies in the U.S., today reported
financial results for the second quarter and six months ended June 30, 2005.
Income from continuing operations for the second quarter increased 9 percent to
$17.5 million, or $0.54 per diluted share, compared with $16.0 million, or $0.49
per diluted share, in last year's second quarter. Net income for the second
quarter was $16.0 million, or $0.49 per diluted share compared to $14.7 million,
or $0.45 per diluted share, for the second quarter of 2004.
For the first six months of 2005, income from continuing operations was $28.0
million, or $0.85 per diluted share, including after-tax costs of $2.2 million,
or $0.07 per diluted share, related to the Company's regional restructuring.
Excluding the restructuring costs, income from continuing operations increased
12 percent to $30.2 million, or $0.92 per diluted share, from $26.9 million, or
$0.82 per diluted share, in the prior year-to-date period. Net income for the
first half of 2005 was $25.6 million, or $0.78 per diluted share, as compared to
$25.1 million, or $0.77 per diluted share, for the first half of 2004.
Additional financial highlights for the second quarter of 2005, as compared to
the corresponding period a year ago, included:
o Total revenue for the quarter was approximately $1.5 billion, up 12
percent. Total gross profit was $221.4 million, a 10 percent increase.
o Same-store retail revenue and gross profit (excluding fleet and wholesale
revenue) increased 9 and 7 percent, respectively.
o New vehicle retail revenue rose 10 percent (6 percent same-store), and unit
sales increased 7 percent (3 percent same-store). New vehicle retail gross
profit increased 6 percent (3 percent same-store).
o Used vehicle retail revenue increased 19 percent (16 percent same-store),
and unit sales rose 10 percent (6 percent same-store). Used vehicle retail
gross profit increased 12 percent (10 percent same-store).
o Parts, service and collision repair revenue increased 13 percent (11
percent same-store), while the related gross profit rose 10 percent (8
percent same-store).
o Net finance and insurance (F&I) revenue rose 11 percent (7 percent
same-store). F&I per vehicle retailed (PVR) increased 3 percent to $913,
and platform F&I PVR rose 5 percent to $883.
o As a percentage of gross profit, selling, general and administrative (SG&A)
expenses for the quarter were 77.0 percent, compared to 77.5 percent in the
prior year. Excluding rent expense, SG&A expenses were 71.4 percent, down
180 basis points compared to the prior year. Rent expense was higher in
2005 principally due to a sale-leaseback transaction in July 2004 that had
the effect of increasing rent while reducing interest and depreciation
expense.
President and CEO Kenneth B. Gilman commented, "I am pleased with our ability to
achieve solid top and bottom-line results this quarter. During a very
promotional new car environment, which was highlighted by General Motors'
generous "employee discount" program, our business model once again turned in a
solid performance. Of particular note is the performance of our used car
operations where we achieved substantial gains in both same-store retail revenue
and gross profit. We believe these gains can be attributed to earlier programs
put in place to develop this area of the business. Despite this success, I still
believe additional opportunity exists in used cars, especially in the
lower-priced end of the market."
Mr. Gilman continued, "Our services businesses once again turned in strong
performances and, when combined with our used vehicle business, more than offset
continued pressure on new vehicle gross margins. For the quarter, fixed
operations and finance and insurance generated 8 and 7 percent gains in
same-store gross profit, respectively, well ahead of our ongoing objective of 3
to 5 percent increases. Our parts and service business continues to benefit from
our decision two years ago to focus more resources on targeted investments in
people, capacity expansion, new equipment and better training for our service
advisors."
J. Gordon Smith, Senior Vice President and CFO, said, "We remained on track
during the quarter with the implementation of our regional reorganization
program, and have already achieved most of the expected cost savings. We
continue to believe the restructuring will deliver cost reductions in the second
half of 2005 and into 2006, with annualized savings of approximately $0.10 per
share. In addition, cost containment initiatives that were put in place several
quarters ago have begun to yield tangible results, and we believe will continue
to produce additional savings in the future."
Mr. Smith continued, "Portfolio management has been another important focus
during the year. The further streamlining of our dealership portfolio through
the divestiture of under-performing stores eliminates some considerable
distractions and enhances the Company's overall productivity. Specifically,
three stores that we decided to sell in the second quarter of 2005 lost
approximately $0.02 per diluted share during the quarter, which is included in
discontinued operations. The remaining $0.03 loss from discontinued operations
principally relates to stores sold in 2005 but placed in discontinued operations
in 2004. On the acquisition front, we've been a bit selective in our approach,
unwilling to pay above market prices to induce owners to sell. As a result, we
expect the year to come in below the low end of our previously announced
acquisition target of adding $300 million in annualized revenues."
Commenting on earnings guidance for 2005, the Company noted that it has raised
its expected range of estimates for earnings per share from continuing
operations to between $1.74 and $1.80. This range does not reflect the net costs
resulting from the regional reorganization currently estimated at $0.03 per
share, nor the potential adoption of Statement of Financial Accounting
Standard 123(R).
Asbury will host a conference call to discuss its second quarter results this
morning at 10:00 a.m. Eastern Time. The call will be simulcast live on the
Internet and can be accessed by logging onto http://www.asburyauto.com or
http://www.ccbn.com. In addition, a live audio of the call will be accessible to
the public by calling 800-540-0559; international callers, please dial
785-832-1508. No access code is required. A conference call replay will be
available approximately two hours following the call for 14 days and can be
accessed by calling 888-203-1112 (domestic), or 719-457-0820 (international);
access code 9363044, or by logging onto the Company's website.
About Asbury Automotive Group
Asbury Automotive Group, Inc., headquartered in New York City, is one of the
largest automobile retailers in the U.S., with 2004 revenue of approximately
$5.3 billion. Built through a combination of organic growth and a series of
strategic acquisitions, the Company currently operates 94 retail auto stores,
encompassing 129 franchises for the sale and servicing of 33 different brands of
American, European and Asian automobiles. Asbury believes that its product mix
contains a higher proportion of the more desirable luxury and mid-line import
brands than most public automotive retailers. The Company offers customers an
extensive range of automotive products and services, including new and used
vehicle sales and related financing and insurance, vehicle maintenance and
repair services, replacement parts and service contracts.
Forward-Looking Statements
This press release contains "forward-looking statements" as that term is defined
in the Private Securities Litigation Reform Act of 1995. The forward-looking
statements include statements relating to goals, plans, projections and guidance
regarding the Company's financial position, results of operations, market
position, product development, pending and potential future acquisitions and
business strategy. These statements are based on management's current
expectations and involve significant risks and uncertainties that may cause
results to differ materially from those set forth in the statements. These risks
and uncertainties include, among other things, market factors, the Company's
relationships with vehicle manufacturers and other suppliers which could cause,
among other things, acquisitions under contract or letters of intent to fail,
risks associated with the Company's substantial indebtedness, risks related to
pending and potential future acquisitions, risks related to competition in the
automotive retail and service industries, general economic conditions both
nationally and locally and governmental regulations and legislation. There can
be no guarantees that the Company's plans for future operations will be
successfully implemented or that they will prove to be commercially successful.
These and other risk factors are discussed in the Company's annual report on
Form 10-K and in its other filings with the Securities and Exchange Commission.
We undertake no obligation to publicly update any forward-looking statement,
whether as a result of new information, future events or otherwise.
Asbury Automotive Group, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
For the Three Months Ended For the Six Months Ended
June 30, June 30,
-------------------------- --------------------------
2005 2004 2005 2004
----------- ----------- ----------- -----------
REVENUES:
New vehicle ........................... $ 903,767 $ 814,427 $ 1,688,962 $ 1,494,018
Used vehicle .......................... 366,917 316,278 705,023 615,330
Parts, service and collision repair ... 164,529 146,085 322,696 283,933
Finance and insurance, net ............ 41,646 37,453 79,334 68,374
----------- ----------- ----------- -----------
Total revenues ................... 1,476,859 1,314,243 2,796,015 2,461,655
COST OF SALES:
New vehicle ........................... 841,065 755,381 1,571,227 1,383,735
Used vehicle .......................... 335,403 289,033 643,015 561,044
Parts, service and collision repair ... 79,016 68,224 154,701 134,172
----------- ----------- ----------- -----------
Total cost of sales .............. 1,255,484 1,112,638 2,368,943 2,078,951
----------- ----------- ----------- -----------
GROSS PROFIT .............................. 221,375 201,605 427,072 382,704
OPERATING EXPENSES:
Selling, general and administrative ... 170,551 156,332 338,358 300,694
Depreciation and amortization ......... 5,102 5,084 10,037 9,947
----------- ----------- ----------- -----------
Income from operations ........... 45,722 40,189 78,677 72,063
OTHER INCOME (EXPENSE):
Floor plan interest expense ........... (7,977) (4,883) (14,973) (9,128)
Other interest expense ................ (10,131) (10,186) (19,619) (20,506)
Interest income ....................... 235 109 491 381
Other income (expense) ................ 186 152 158 (59)
----------- ----------- ----------- -----------
Total other expense, net ......... (17,687) (14,808) (33,943) (29,312)
----------- ----------- ----------- -----------
Income before income taxes ....... 28,035 25,381 44,734 42,751
INCOME TAX EXPENSE ........................ 10,513 9,341 16,775 15,855
----------- ----------- ----------- -----------
INCOME FROM CONTINUING OPERATIONS ......... 17,522 16,040 27,959 26,896
DISCONTINUED OPERATIONS, net of tax ....... (1,536) (1,292) (2,332) (1,784)
----------- ----------- ----------- -----------
Net income ....................... $ 15,986 $ 14,748 $ 25,627 $ 25,112
=========== =========== =========== ===========
BASIC EARNINGS PER COMMON SHARE:
Continuing operations ................. $ 0.54 $ 0.49 $ 0.86 $ 0.83
Discontinued operations ............... (0.05) (0.04) (0.07) (0.06)
----------- ----------- ----------- -----------
Net income ............................ $ 0.49 $ 0.45 $ 0.79 $ 0.77
=========== =========== =========== ===========
DILUTED EARNINGS PER COMMON SHARE:
Continuing operations ................. $ 0.54 $ 0.49 $ 0.85 0.82
Discontinued operations ............... (0.05) (0.04) (0.07) (0.05)
----------- ----------- ----------- -----------
Net income ............................ $ 0.49 $ 0.45 $ 0.78 $ 0.77
=========== =========== =========== ===========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic ................................. 32,604 32,470 32,596 32,452
=========== =========== =========== ===========
Diluted ............................... 32,725 32,656 32,753 32,688
=========== =========== =========== ===========
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported for the Same Store for the
Three Months Ended June 30, Three Months Ended June 30,
----------------------------------------- -----------------------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units .......................... 29,094 63.8% 27,114 64.3% 27,866 63.5% 27,114 64.3%
Used units ......................... 16,520 36.2% 15,072 35.7% 16,005 36.5% 15,072 35.7%
---------- ----- ---------- ----- ---------- ----- ---------- -----
Total units ................... 45,614 100.0% 42,186 100.0% 43,871 100.0% 42,186 100.0%
========== ===== ========== ===== ========== ===== ========== =====
REVENUE:
New retail ......................... $ 879,202 59.5% $ 798,482 60.8% $ 848,376 59.3% $ 798,482 60.8%
Used retail ........................ 279,451 18.9% 234,321 17.8% 272,140 19.0% 234,321 17.8%
Parts, service and collision repair 164,529 11.2% 146,085 11.1% 162,302 11.4% 146,085 11.1%
Finance and insurance, net ......... 41,646 2.8% 37,453 2.9% 40,082 2.8% 37,453 2.9%
---------- ---------- ---------- ----------
Total retail revenue .......... 1,364,828 1,216,341 1,322,900 1,216,341
Fleet .............................. 24,565 1.7% 15,945 1.2% 23,346 1.6% 15,945 1.2%
Wholesale .......................... 87,466 5.9% 81,957 6.2% 84,552 5.9% 81,957 6.2%
---------- ----- ---------- ----- ---------- ----- ---------- -----
Total revenue ................. $1,476,859 100.0% $1,314,243 100.0% $1,430,798 100.0% $1,314,243 100.0%
========== ===== ========== ===== ========== ===== ========== =====
GROSS PROFIT
New retail ......................... $ 61,903 28.0% $ 58,397 29.0% $ 59,975 27.8% $ 58,397 29.0%
Used retail ........................ 31,487 14.2% 28,050 13.9% 30,763 14.3% 28,050 13.9%
Parts, service and collision repair 85,513 38.6% 77,861 38.6% 84,015 38.9% 77,861 38.6%
Finance and insurance, net ......... 41,646 18.8% 37,453 18.6% 40,082 18.6% 37,453 18.6%
---------- ---------- ---------- ----------
Total retail gross profit ..... 220,549 201,761 214,835 201,761
Fleet .............................. 799 0.4% 649 0.3% 808 0.4% 649 0.3%
Wholesale .......................... 27 -- (805) (0.4%) 52 -- (805) (0.4%)
---------- ----- ---------- ----- ---------- ----- ---------- -----
Total gross profit ............ $ 221,375 100.0% $ 201,605 100.0% $ 215,695 100.0% $ 201,605 100.0%
========== ===== ========== ===== ========== ===== ========== =====
SG&A expenses excluding rent expense $ 158,007 $ 147,521 $ 153,424 $ 147,060
SG&A (excluding rent expense) as a
percent of gross profit .......... 71.4% 73.2% 71.1% 72.9%
GROSS PROFIT PER VEHICLE RETAILED:
New retail ......................... $ 2,128 $ 2,154 $ 2,152 2,154
Used retail ........................ 1,906 1,861 1,922 1,861
Finance and insurance, net ......... 913 888 914 888
Platform finance and insurance, net 883 843 882 843
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As Reported for the Same Store for the
Six Months Ended June 30, Six Months Ended June 30,
----------------------------------------- -----------------------------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
RETAIL VEHICLES SOLD:
New units .......................... 53,997 62.8% 49,692 62.5% 51,264 62.4% 49,692 62.5%
Used units ......................... 32,027 37.2% 29,795 37.5% 30,908 37.6% 29,795 37.5%
---------- ----- ---------- ----- ---------- ----- ---------- -----
Total units ................... 86,024 100.0% 79,487 100.0% 82,172 100.0% 79,487 100.0%
========== ===== ========== ===== ========== ===== ========== =====
REVENUE:
New retail ......................... $1,639,052 58.6% $1,467,999 59.6% $1,567,930 58.4% $1,467,999 59.6%
Used retail ........................ 531,931 19.0% 458,351 18.6% 514,403 19.1% 458,351 18.6%
Parts, service and collision repair 322,696 11.6% 283,933 11.5% 313,819 11.7% 283,933 11.5%
Finance and insurance, net ......... 79,334 2.8% 68,374 2.8% 76,057 2.8% 68,374 2.8%
---------- ---------- ---------- ----------
Total retail revenue .......... 2,573,013 2,278,657 2,472,209 2,278,657
Fleet .............................. 49,910 1.8% 26,019 1.1% 48,418 1.8% 26,019 1.1%
Wholesale .......................... 173,092 6.2% 156,979 6.4% 165,545 6.2% 156,979 6.4%
---------- ----- ---------- ----- ---------- ----- ---------- -----
Total revenue ................. $2,796,015 100.0% $2,461,655 100.0% $2,686,172 100.0% $2,461,655 100.0%
========== ===== ========== ===== ========== ===== ========== =====
GROSS PROFIT
New retail ......................... $ 116,335 27.2% $ 109,268 28.5% $ 111,467 27.0% $ 109,268 28.5%
Used retail ........................ 60,870 14.3% 55,179 14.4% 59,150 14.4% 55,179 14.4%
Parts, service and collision repair 167,995 39.3% 149,761 39.1% 163,134 39.6% 149,761 39.1%
Finance and insurance, net ......... 79,334 18.6% 68,374 17.9% 76,057 18.4% 68,374 17.9%
---------- ---------- ---------- ----------
Total retail gross profit ..... 424,534 382,582 409,808 382,582
Fleet .............................. 1,400 0.3% 1,015 0.3% 1,404 0.3% 1,015 0.3%
Wholesale .......................... 1,138 0.3% (893) (0.2%) 1,125 0.3% (893) (0.2%)
---------- ----- ---------- ----- ---------- ----- ---------- -----
Total gross profit ............ $ 427,072 100.0% $ 382,704 100.0% $ 412,337 100.0% $ 382,704 100.0%
========== ===== ========== ===== ========== ===== ========== =====
SG&A expenses excluding
reorganization costs ............. $ 309,493 $ 283,701 $ 297,134 $ 283,240
SG&A (excluding reorganization
costs and rent) as a percent of
gross profit ..................... 72.5% 74.1% 72.1% 74.0%
GROSS PROFIT PER VEHICLE RETAILED:
New retail ......................... 2,154 2,199 2,174 2,199
Used retail ........................ 1,901 1,852 1,914 1,852
Finance and insurance, net ......... 922 860 926 860
Platform finance and insurance, net 892 821 894 821
Asbury Automotive Group, Inc.
Selected Data
(Dollars in thousands except per share data)
(Unaudited)
As of As of
June 30, 2005 December 31, 2004
------------- -----------------
BALANCE SHEET HIGHLIGHTS:
Cash and cash equivalents .......... $ 11,049 $ 28,093
Inventories ........................ 722,160 761,557
Total current assets ............... 1,116,385 1,143,506
Floor plan notes payable ........... 613,137 650,948
Total current liabilities .......... 829,333 847,510
CAPITALIZATION:
Long-term debt (including current
portion) ......................... $ 509,344 $ 526,415
Stockholders' equity ............... 504,456 481,733
---------- ----------
Total ......................... $1,013,800 $1,008,148
========== ==========
ASBURY AUTOMOTIVE GROUP, INC.
SUPPLEMENTAL DISCLOSURES REGARDING NON-GAAP FINANCIAL INFORMATION
(In thousands, except vehicle data)
(Unaudited)
The Company evaluates finance and insurance gross profit performance on a
per-vehicle retailed basis by dividing total finance and insurance gross profit
by the number of retail vehicles sold. During 2003, the Company renegotiated a
contract with a third party finance and insurance product provider, which
resulted in the recognition of income that was not attributable to retail
vehicles sold during the year. The Company believes that platform finance and
insurance, which excludes the additional revenue derived from contracts
negotiated by the corporate office, provides a more accurate measure of the
Company's finance and insurance operating performance. The following table
reconciles finance and insurance gross profit to platform finance and insurance
gross profit, and provides necessary components to calculate platform finance
and insurance gross profit per vehicle retailed.
As Reported For the Three Same Store For the Three
Months Ended June 30, Months Ended June 30,
------------------------- ------------------------
2005 2004 2005 2004
-------- -------- -------- --------
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT TO
PLATFORM FINANCE AND INSURANCE GROSS PROFIT:
Finance and insurance, net ............................ $ 41,646 $ 37,453 $ 40,082 $ 37,453
Less: corporate finance and insurance ................ (1,367) (1,906) (1,367) (1,906)
-------- -------- -------- --------
Platform finance and insurance, net .............. $ 40,279 $ 35,547 $ 38,715 $ 35,547
======== ======== ======== ========
RETAIL VEHICLES SOLD:
New retail units ..................................... 29,094 27,114 27,866 27,114
Used retail units .................................... 16,520 15,072 16,005 15,072
-------- -------- -------- --------
Total units ..................................... 45,614 42,186 43,871 42,186
======== ======== ======== ========
As Reported For the Six Same Store For the Six
Months Ended June 30, Months Ended June 30,
------------------------- ------------------------
2005 2004 2005 2004
-------- -------- -------- --------
RECONCILIATION OF FINANCE AND INSURANCE GROSS PROFIT TO
PLATFORM FINANCE AND INSURANCE GROSS PROFIT:
Finance and insurance, net ............................ $ 79,334 $ 68,374 $ 76,057 $ 68,374
Less: corporate finance and insurance ................ (2,570) (3,149) (2,570) (3,149)
-------- -------- -------- --------
Platform finance and insurance, net .............. $ 76,764 $ 65,225 $ 73,487 $ 65,225
======== ======== ======== ========
RETAIL VEHICLES SOLD:
New retail units ..................................... 53,997 49,692 51,264 49,692
Used retail units .................................... 32,027 29,795 30,908 29,795
-------- -------- -------- --------
Total units .................................... 86,024 79,487 82,172 79,487
======== ======== ======== ========
The Company's operating income was largely impacted by restructuring costs
incurred during the first quarter of 2005 and incremental rent expense
associated with a sale-leaseback transaction that was entered into in the third
quarter of 2004. The Company believes that excluding the restructuring costs and
rent expense from the selling, general and administrative expenses provides a
more meaningful basis to measure the results of the Company's operations
compared to that of the prior year period. A reconciliation of the Company's
adjusted selling, general and administrative expenses is presented below.
As Reported for the As Reported for the
Three Months Ended Three Months Ended
June 30, 2005 June 30, 2004 Variance
------------------- -------------------- ---------
SG&A expenses ........ $170,551 $156,332 $ 14,219
Less: Rent expense ... (12,544) (8,811) (3,733)
-------- -------- --------
Adjusted SG&A expenses $158,007 $147,521 $ 10,486
======== ======== ========
Same Store Results Same Store Results
for the Three Months for the Three Months
Ended June 30, 2005 Ended June 30, 2004 Variance
-------------------- -------------------- ---------
SG&A expenses ........ $165,269 $155,855 $ 9,414
Less: Rent expense ... (11,845) (8,795) (3,050)
-------- -------- --------
Adjusted SG&A expenses $153,424 $147,060 $ 6,364
======== ======== ========
As Reported for the As Reported for the
Six Months Ended Six Months Ended
June 30, 2005 June 30, 2004 Variance
-------------------- -------------------- ---------
SG&A expenses ........... $338,358 $300,694 $ 37,664
Less: Restructuring costs (3,566) -- (3,566)
Rent expense ...... (25,299) (16,993) (8,306)
-------- -------- --------
Adjusted SG&A expenses .. $309,493 $283,701 $ 25,792
======== ======== ========
Same Store Results Same Store Results
for the Six Months for the Six Months
Ended June 30, 2005 Ended June 30, 2004 Variance
-------------------- -------------------- ---------
SG&A expenses ........... $324,171 $300,217 $ 23,954
Less: Restructuring costs (3,566) -- (3,566)
Rent expense ...... (23,471) (16,977) (6,494)
-------- -------- --------
Adjusted SG&A expenses .. $297,134 $283,240 $ 13,894
======== ======== ========
The Company defines income from continuing operations as net income less
discontinued operations. We believe that excluding certain items from income
from continuing operations for the six months ended June 30, 2005 and 2004,
provides a more meaningful basis to measure the results of our operations. A
reconciliation of our net income to adjusted income from continuing operations
is presented below.
For the Six Months
Ended June 30,
------------------
2005 2004
------- -------
RECONCILIATION OF NET INCOME TO ADJUSTED
INCOME FROM CONTINUING OPERATIONS:
Net income ........................................ 25,627 25,112
Discontinued operations ........................... 2,332 1,784
------- -------
Income from continuing operations ................. 27,959 26,896
Tax affected reorganization costs (a) ................ 2,229 --
------- -------
Adjusted income from continuing operations ........... $30,188 $26,896
======= =======
RECONCILIATION OF NET INCOME PER DILUTED COMMON
SHARE TO ADJUSTED INCOME FROM CONTINUING OPERATIONS
PER DILUTED COMMON SHARE:
Net income ........................................ $ 0.78 $ 0.77
Discontinued operations ........................... 0.07 0.05
------- -------
Income from continuing operations ................. 0.85 0.82
Tax affected reorganization costs (a) ............. 0.07 --
------- -------
Adjusted income from continuing operations ........ $ 0.92 $ 0.82
======= =======
Weighted average common shares outstanding (diluted): 32,753 32,688
======= =======
(a) During the first six months of 2005, the Company incurred severance costs
of $3,566 ($2,229 net of tax) associated with our previously announced
reorganization.