UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
( X ) QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 0R 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission File Number 000-23186
BIOCRYST PHARMACEUTICALS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 62-1413174
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
2190 Parkway Lake Drive; Birmingham, Alabama 35244
(Address and zip code of principal executive offices)
(205) 444-4600
(Registrant's telephone number, including area code)
NONE
(Former name, former address and former fiscal year, if changed since
last report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days:
Yes [ X ] No [ ]
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date: 13,689,178 shares of the
Company's Common Stock, $.01 par value, were outstanding as of November 12,
1996.
BIOCRYST PHARMACEUTICALS, INC.
INDEX
Part I. Financial Information Page No.
--------
Item 1. Financial Statements:
Condensed Balance Sheets - September 30, 1996
and December 31, 1995 3
Condensed Statements of Operations - Three
and Nine Months Ended September 30, 1996
and 1995 4
Condensed Statements of Cash Flows - Nine
Months Ended September 30, 1996
and 1995 5
Notes to Condensed Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 9
Item 2. Changes in Securities 9
Item 3. Defaults Upon Senior Securities 9
Item 4. Submission of Matters to a Vote of Security Holders 9
Item 5. Other Information 9
Item 6. Exhibits and Reports on Form 8-K 9
Signatures 12
2
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
BIOCRYST PHARMACEUTICALS, INC.
CONDENSED BALANCE SHEETS
September 30, 1996 and December 31, 1995
(In thousands, except per share)
ASSETS 1996 1995
(Unaudited) (Note 1)
Cash and cash equivalents $ 6,482 $ 6,135
Offering proceeds receivable 18,800
Securities held-to-maturity 8,613 5,279
Prepaid expenses and other current assets 324 279
-------- --------
Total current assets 34,219 11,693
Furniture and equipment, net 1,169 1,363
-------- --------
Total assets $ 35,388 $ 13,056
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 620 $ 397
Accrued taxes, other than income 180 350
Accrued vacation 123 111
Current maturities of long-term debt 26 29
Current maturities of capital lease obligations 268 242
-------- --------
Total current liabilities 1,217 1,129
Long-term debt 19
Capital lease obligations 75 282
Deferred license fee 300 300
-------- --------
Total liabilities 1,592 1,730
-------- --------
Stockholders' equity:
Convertible preferred stock, $.01 par value,
shares authorized - 5,000;
shares issued and outstanding - none
Common stock, $.01 par value, shares
authorized - 45,000; shares
issued and outstanding -
13,185 in 1996 and 9,498 in 1995 132 95
Additional paid-in capital 69,367 41,298
Accumulated deficit (35,703) (30,067)
-------- --------
Total stockholders' equity 33,796 11,326
-------- --------
Total liabilities and stockholders' equity $ 35,388 $ 13,056
======== ========
See accompanying notes to condensed financial statements.
3
BIOCRYST PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF OPERATIONS
Periods Ended September 30, 1996 and 1995
(In thousands, except per share)
Three Months Nine Months
1996 1995 1996 1995
Collaborative and other research
and development $ 37 $ 64 $ 1,558 $ 159
Interest and other 215 201 603 486
-------- -------- -------- --------
Revenues 252 265 2,161 645
-------- -------- -------- --------
Research and development 2,221 1,689 5,635 5,442
General and administrative 520 456 2,083 1,498
Interest 23 35 79 112
-------- -------- -------- --------
Expenses 2,764 2,180 7,797 7,052
-------- -------- -------- --------
Net loss $ (2,512) $ (1,915) $ (5,636) $ (6,407)
======== ======== ======== ========
Net loss per share (Note 2) $ (.23) $ (.20) $ (.54) $ (.74)
Weighted average shares outstanding
(Note 2) 10,846 9,490 10,348 8,705
See accompanying notes to condensed financial statements.
4
BIOCRYST PHARMACEUTICALS, INC.
CONDENSED STATEMENTS OF CASH FLOWS Nine Months Ended
September 30, 1996 and 1995
(In thousands)
1996 1995
Operating activities
Net loss $ (5,636) $ (6,407)
Depreciation and amortization 393 423
Changes in operating assets and liabilities, net 20 (154)
-------- --------
Net cash used by operating activities (5,223) (6,138)
-------- --------
Investing activities
Purchases of furniture and equipment (199) (177)
Purchase of marketable securities (10,579) (4,918)
Maturities of marketable securities 7,245 13,113
-------- --------
Net cash provided by investing activities (3,533) 8,018
-------- --------
Financing activities
Principal payments on debt and capital
lease obligations (202) (217)
Proceeds from sale of common stock,
net of issuance cost 9,305 8,702
-------- --------
Net cash provided by financing activities 9,103 8,485
-------- --------
Increase in cash and cash equivalents 347 10,365
Cash and cash equivalents at
beginning of period 6,135 2,678
-------- --------
Cash and cash equivalents at
end of period $ 6,482 $ 13,043
======== ========
See accompanying notes to condensed financial statements.
5
BIOCRYST PHARMACEUTICALS, INC.
NOTES TO CONDENSED FINANCIAL STATEMENTS
Note 1. Basis of Preparation
The condensed balance sheet as of September 30, 1996 and the condensed
statements of operations and cash flows for the nine months ended September 30,
1996 and 1995 have been prepared in accordance with generally accepted
accounting principles by the Company and have not been audited. Such financial
statements reflect all adjustments which are, in management's opinion, necessary
to present fairly, in all material respects, the financial position at September
30, 1996 and the results of operations and cash flows for the nine months ended
September 30, 1996 and 1995. These condensed financial statements should be read
in conjunction with the financial statements for the year ended December 31,
1995 and the notes thereto included in the Company's 1995 Annual Report. Interim
operating results are not necessarily indicative of operating results for the
full year. The balance sheet as of December 31, 1995 has been prepared from the
audited financial statements included in the previously mentioned Annual Report.
Note 2. Net Loss Per Share
Net loss per share is computed using the weighted average number of shares of
common stock outstanding. Common equivalent shares (from unexercised stock
options and warrants and convertible preferred stock) have been excluded from
the computation as their effect is anti-dilutive.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
This Quarterly Report on Form 10-Q contains certain statements of a
forward-looking nature that involve risks and uncertainties relating to future
events or the future financial performance of the Company. Such statements are
only predictions and the actual events or results may differ materially from the
results discussed in the forward-looking statements. Factors that could cause or
contribute to such differences include those discussed below as well as those
discussed in other filings made by the Company with the Securities and Exchange
Commission.
Overview
Since its inception in 1986, the Company has been engaged in research and
development activities (including conducting preclinical studies and clinical
trials) and organizational efforts, including recruiting its scientific and
management personnel, establishing laboratory facilities, engaging its
Scientific Advisory Board and raising capital. The Company has not received any
revenue from the sale of pharmaceutical products and does not expect to receive
such revenues to a significant extent for at least several years, if at all. The
Company has incurred operating losses since its inception. The Company expects
to incur significant additional operating losses over the next several years and
expects such losses to increase as the Company's research and development and
clinical trial efforts expand.
The Company's future business, financial condition and results of operations are
dependent on the Company's ability to successfully develop, market and
manufacture its pharmaceutical products for the treatment of immunological and
infectious diseases and disorders. Inherent in this process are a number of
factors that the Company must carefully manage in order to be successful. Some
of these factors are: conducting preclinical studies and clinical trials of its
compounds that demonstrate such compounds' safety and effectiveness; obtaining
additional financing to support the Company's operations; achieving revenues or
profitable operations; developing collaborative arrangements with corporate
partners, academic institutions and consultants to support research and
development efforts and to conduct such clinical trials; obtaining regulatory
approval for such compounds; entering into agreements for product development,
manufacturing and commercialization; developing the capacity to manufacture,
market and sell its products either directly or with collaborative partners;
competing effectively with other pharmaceutical and biotechnological products
for human therapeutic applications; obtaining adequate reimbursement from
third-party payors for its products; retaining and attracting key personnel;
obtaining and/or maintaining product liability and clinical trial insurance;
protecting its patents and proprietary rights; and avoiding
6
infringement claims by third parties. No assurance can be given that the Company
will be able to manage such factors successfully. The failure to manage such
factors successfully could have a material adverse effect on the Company's
business, financial condition and results of operations.
Results of Operations (first nine months of 1996 compared to first nine months
of 1995)
Revenues increased 235.0% to $2,161,000 in the first nine months of 1996 from
$645,000 in the first nine months of 1995. The increase was primarily due to the
$1.5 million license fee paid to the Company by Torii Pharmaceuticals Co., Ltd.
("Torii") pursuant to a license agreement (see below).
Research and development expenses increased 3.5% to $5,635,000 in the first nine
months of 1996 from $5,442,000 in the first nine months of 1995. The increase is
primarily attributable to the hiring of additional personnel. A decrease in
costs associated with conducting additional clinical trials, preclinical studies
and large-scale synthesis of BCX-34 (these costs fluctuate from period to period
depending upon the stage of research or development) was offset by increased
payments for outside contract research.
General and administrative expenses increased 39.1% to $2,083,000 in the first
nine months of 1996 from $1,498,000 in the first nine months of 1995. The
increase is primarily the result of approximately $574,000 in consulting fees
and withholding taxes incurred in connection with the license agreement with
Torii.
Interest expense decreased 29.5% to $79,000 in the first nine months of 1996
from $112,000 in the first nine months of 1995. The decrease is due to a decline
in capitalized lease obligations, along with long-term debt, resulting in lesser
interest expense. The Company obtained most of its leases in connection with the
move to its new facilities in April 1992.
Liquidity and Capital Resources
Cash expenditures have exceeded revenues since the Company's inception.
Operations have principally been funded through public offerings of common
stock, private placements of equity and debt securities, equipment lease
financing, facility leases, collaborative and other research and development
agreements (including a license and options for licenses), research grants and
interest income. In addition, the Company has attempted to contain costs and
reduce cash flow requirements by renting scientific equipment or facilities,
contracting with third parties to conduct certain research and development and
using consultants. The Company expects to incur additional expenses, resulting
in significant losses, as it continues and expands its research and development
activities and undertakes additional preclinical studies and clinical trials of
compounds which have been or may be discovered. The Company also expects to
incur substantial administrative, manufacturing and commercialization
expenditures in the future as it seeks FDA approval for its compounds and
establishes its manufacturing capability under Good Manufacturing Practices, and
substantial expenses related to the filing, prosecution, maintenance, defense
and enforcement of patent and other intellectual property claims.
At September 30, 1996, the Company's cash, cash equivalents and securities
held-to-maturity were $15.1 million, an increase of $3.7 million from such
amount at December 31, 1995. The increase was primarily due to the private
placement of common stock in March and May 1996 with proceeds of $9.5 million
partially offset by net cash used by operating activities. Proceeds, after
commissions, receivable from the Company's recent public offering were $18.8
million at September 30, 1996 and the funds were delivered on October 1, 1996.
The Company received $500,000 in June 1993 as a license fee from Ciba-Geigy. The
Company is required to refund up to $300,000 of the fee if sales of any
resultant products are below specified levels.
The Company has financed its equipment purchases primarily with lease lines of
credit. The Company currently has a $500,000 line of credit with its bank to
finance capital equipment. In January 1992, the Company entered into an
operating lease for its current facilities which, based on an extension signed
in December 1994, expires on March 31, 2000, with an option to lease for an
additional three years at current market rates. The operating lease requires the
Company to pay monthly rent (ranging from $10,241 and escalating annually to a
minimum of $12,457 per
7
month in the final year), and a pro rata share of operating expenses and real
estate taxes in excess of base year amounts.
At December 31, 1995, the Company had long-term capital lease and operating
lease obligations which provide for aggregate minimum payments of $531,747 in
1996, $502,077 in 1997 and $306,714 in 1998. The Company is required to expend
$6.0 million over the three-year period ending December 31, 1997 (amended in
October 1996 to extend the three-year period to coincide with the period in
which the Company provides funding to The University of Alabama at Birmingham
("UAB") for work done in their laboratories) on its influenza neuraminidase
project and $1.0 million over the three-year period ending July 18, 1998 on its
complement project in order to maintain a worldwide licenses from UAB. These two
agreements have 25-year terms and are terminable by the Company upon three
months' notice.
In May 1996, the Company entered into an exclusive license agreement with Torii
to develop, manufacture and commercialize BCX-34 and certain other PNP inhibitor
compounds in Japan for the treatment of rheumatoid arthritis, T-cell cancers
(including CTCL) and atopic dermatitis. Upon entering into the agreement, Torii
paid the Company $1.5 million in license fees and made a $1.5 million equity
investment in the Company, purchasing 76,608 shares of common stock at a
purchase price of $19.58 per share. The agreement further provides for potential
milestone payments of up to $19.0 million and royalties on future sales of
licensed products in Japan. Torii is responsible for all development, regulatory
and commercialization expenses in Japan. The agreement is subject to termination
by Torii at any time and by the Company in certain circumstances. Pursuant to
the agreement, Torii may negotiate a license with the Company to develop BCX-34
and certain other PNP inhibitor compounds for additional indications.
At December 31, 1995, the Company had net operating loss and research and
development credit carryforwards of approximately $25.6 million and $1.4
million, respectively, which will expire in 2005 through 2010. At September 30,
1996, the Company's net operating loss carryforward was approximately $31.2
million. Use of the net operating losses and research and development credits
will be subject to a substantial annual limitation due to the ownership
provisions of the Tax Reform Act of 1986. The annual limitation is expected to
result in the expiration of a portion of net operating losses and credits before
utilization, which has been considered by the Company in its computations under
Statement No. 109. Additional sales of the Company's equity securities may
result in further annual limitations on the use of operating loss carryforwards
and research and development credit carryforwards against taxable income in
future years.
The Company plans to finance its needs principally from its existing capital
resources and interest thereon, from payments under collaborative and licensing
agreements with corporate partners, through research grants, and to the extent
available, through lease or loan financing and future public or private
financings. The Company believes that its available funds (including proceeds
receivable from the Company's recent secondary offering) will be sufficient to
fund the Company's operations into 1999. However, this is a forward-looking
statement, and no assurance can be given that there will be no change that would
consume available resources significantly before such time. The Company's
long-term capital requirements and the adequacy of its available funds will
depend upon many factors, including results of research and development, results
of product testing, relationships with strategic partners, changes in the focus
and direction of the Company's research and development programs, competitive
and technological advances and the FDA regulatory process. Additional funds, if
any, may possibly be raised through financing arrangements or collaborative
relationships and/or the issuance of preferred or common stock or convertible
securities, on terms and prices significantly more favorable than those received
by current stockholders, which could have the effect of diluting or adversely
affecting the holdings or rights of existing stockholders of the Company. In
addition, collaborative arrangements may require the Company to transfer certain
material rights to such corporate partners. If adequate funds are not available,
the Company will be required to delay, scale back or eliminate one or more of
its research, drug discovery or development programs or attempt to obtain funds
through arrangements with collaborative partners or others that may require the
Company to relinquish some or all of its rights to certain of its intellectual
property, product candidates or products. No assurance can be given that
additional financing will be available to the Company on acceptable terms, if at
all. Additional funding, whether through additional sales of securities or
collaborative or other arrangements with corporate partners or from other
8
sources, may not be available when needed or on terms acceptable to the Company.
Insufficient funds may require the Company to delay, scale-back or eliminate
certain of its research and development programs or to license third parties to
commercialize products or technologies that the Company would otherwise
undertake itself.
The Company believes that inflation has not had a material impact on its
operations.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings:
No material developments during the third quarter ended September 30,
1996.
Item 2. Changes in Securities:
None
Item 3. Defaults Upon Senior Securities:
None
Item 4. Submission of Matters to a Vote of Security Holders:
None
Item 5. Other Information:
None
Item 6. Exhibits and Reports on Form 8-K:
a. Exhibits:
Number Description
3.1 Composite Certificate of Incorporation of Registrant.
Incorporated by reference to Exhibit 3.1 to the Company's Form
10-Q for the second quarter ending June 30, 1995 dated August
11, 1995.
3.2 By-laws of Registrant. Incorporated by reference to Exhibit
3.2 to the Company's Form 10-Q for the second quarter ending
June 30, 1995 dated August 11, 1995.
4.1 See Exhibits 3.1 and 3.2 for provisions of the Second Restated
Certificate of Incorporation and Bylaws of the Registrant
defining rights of holders of Common Stock of the Registrant.
10.1 Common Stock Purchase Warrant dated October 15, 1991 to
purchase 500,000 shares of Common Stock issued to John
Pappajohn. Incorporated by reference to Exhibit 10.6 to the
Company's Form S-1 Registration Statement (Registration No.
33-73868).
10.2 Common Stock Purchase Warrant dated October 15, 1991 to
purchase 500,000 shares of Common Stock issued to Lindsay
Rosenwald. Incorporated by reference to Exhibit 10.7 to the
Company's Form S-1 Registration Statement (Registration No.
33-73868).
10.3 1991 Stock Option Plan, as amended and restated. Incorporated
by reference to Exhibit 99.1 to the Company's Form S-8
Registration Statement (Registration No. 33-95062).
9
Number Description
10.4 Form of Notice of Stock Option Grant and Stock Option
Agreement. Incorporated by reference to Exhibit 99.2 and 99.3
to the Company's Form S-8 Registration Statement (Registration
No. 33-95062).
10.5 Warehouse Lease dated January 17, 1992 between Principal
Mutual Life Insurance Company and the Registrant. Incorporated
by reference to Exhibit 10.21 to the Company's Form S-1
Registration Statement (Registration No. 33-73868).
10.6 Master Equipment Lease dated January 22, 1992 between Boston
Financial & Equity Corporation and the Registrant.
Incorporated by reference to Exhibit 10.22 to the Company's
Form S-1 Registration Statement (Registration No. 33-73868).
10.7 Equipment Leases dated July 25, 1992, February 25, 1993,
August 25, 1993, and November 25, 1993 between Ventana
Leasing, Inc. and the Registrant. Incorporated by reference to
Exhibit 10.23 to the Company's Form S-1 Registration Statement
(Registration No. 33-73868).
10.8 Common Stock Purchase Warrants issued in connection with the
issuance of Series A Convertible Preferred Stock. Incorporated
by reference to Exhibit 10.32 to the Company's Form S-1
Registration Statement (Registration No. 33-73868).
10.9 Private Placement Agency Agreement dated July 1, 1993 between
the Registrant and Paramount Capital, Inc., as amended.
Incorporated by reference to Exhibit 10.33 to the Company's
Form S-1 Registration Statement (Registration No. 33-73868).
10.10 Subscription and Preferred Stock Purchase Agreement among the
Registrant and the purchasers of Series A Convertible
Preferred Stock.
10.11 Fourth Amended and Restated Registration Rights Agreement
among the Registrant and certain securityholders. Incorporated
by reference to Exhibit 10.35 to the Company's Form S-1
Registration Statement (Registration No. 33-73868).
10.12 Common Stock Purchase Warrants issued in connection with the
issuance of Series B Convertible Preferred Stock. Incorporated
by reference to Exhibit 10.36 to the Company's Form S-1
Registration Statement (Registration No. 33-73868).
10.13 Common Stock Purchase Warrants dated December 7, 1993 to
purchase 49,400 shares of Common Stock issued to each of John
Pappajohn, Lindsay A. Rosenwald and William M. Spencer.
Incorporated by reference to Exhibit 10.37 to the Company's
Form S-1 Registration Statement (Registration No. 33-73868).
10.14 Employment Agreement dated November 19, 1993 between the
Registrant and Charles E. Bugg, Ph.D. Incorporated by
reference to Exhibit 10.38 to the Company's Form S-1
Registration Statement (Registration No. 33-73868).
10.15# License Agreement dated April 15, 1993 between Ciba-Geigy
Corporation and the Registrant. Incorporated by reference to
Exhibit 10.40 to the Company's Form S-1 Registration Statement
(Registration No. 33-73868).
10.16 Stock Purchase Agreement dated September 21, 1994 between
Registrant and Bernard B. Levine to purchase 515,000 shares of
common stock. Incorporated by reference to Exhibit 10.2 to the
Company's Form 10-Q for the third quarter ending September 30,
1994 dated November 10, 1994.
10.17 Registration Rights Agreement dated September 21, 1994 between
Registrant and Bernard B. Levine. Incorporated by reference to
Exhibit 10.3 to the Company's Form 10-Q for the third quarter
ending September 30, 1994 dated November 10, 1994.
10
Number Description
10.18 Employee Stock Purchase Plan. Incorporated by reference to
Exhibit 99.4 to the Company's Form S-8 Registration Statement
(Registration No. 33-95062).
10.19 First Amendment to Lease Agreement between Registrant and
Principal Mutual Life Insurance Company, Inc. for
office/warehouse space. Incorporated by reference Exhibit
10.21 to the Company's Form 10K for the year ending December
31, 1994 dated March 28, 1995.
10.20 Form of Stock Purchase Agreement dated May 1995 among
Registrant and various parties to purchase 1,570,000 shares of
common stock. Incorporated by reference to Exhibit 10.22 to
the Company's Form 10-Q for the second quarter ending June 30,
1995 dated August 11, 1995.
10.21 Form of Registration Rights Agreement dated May 1995 between
Registrant and various parties. Incorporated by reference to
Exhibit 10.23 to the Company's Form 10-Q for the second
quarter ending June 30, 1995 dated August 11, 1995.
10.22 Form of Stock Purchase Agreement dated March 22, 1996 among
Registrant and certain investors to purchase 1,000,000 shares
of common stock. Incorporated by reference to Exhibit 10.1 to
the Company's Form 8-K dated March 22, 1996.
10.23 Form of Registration Rights Agreement dated March 22, 1996
between Registrant and certain investors. Incorporated by
reference to Exhibit 10.2 to the Company's Form 8-K dated
March 22, 1996.
10.24# License Agreement, dated May 31, 1996, between Registrant and
Torii Pharmaceuticals Co., Ltd. ("Torii"). Incorporated by
reference to Exhibit 10.1 to the Company's Form 8-K/A dated
May 3, 1996 and filed August 2, 1996.
10.25# Stock Purchase Agreement, dated May 31, 1996, between
Registrant and Torii. Incorporated by reference to Exhibit
10.2 to the Company's Form 8-K/A dated May 3, 1996 and filed
August 2, 1996.
27.1 Financial Data Schedule
----------
# Confidential treatment granted.
b. Reports on Form 8-K:
A Form 8-K/A dated May 3, 1996 was voluntarily filed on August 2, 1996 for
Item 5, Other Events, concerning two press releases: BioCryst Reports
Encouraging Preliminary Results from a Phase II Trial of its Lead
Compound, BCX-34, for Topical Treatment of Psoriasis and BioCryst Enters
License Agreement with Japanese Pharmaceutical Company for Lead Drug
Program. The Form 8-K/A was filed to respond to Securities and Exchange
Commission comments in regards to a confidential treatment request for the
license and stock purchase agreements dated May 31, 1996 between the
registrant and Torii Pharmaceutical Co., Ltd. previously filed on June 25,
1996 as exhibits to the Form 8-K.
11
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.
BIOCRYST PHARMACEUTICALS, INC.
Date: November 14, 1996 /s/ Charles E. Bugg
-----------------------------
Charles E. Bugg
Chairman, President and Chief
Executive Officer
Date: November 14, 1996 /s/ Ronald E. Gray
-----------------------------
Ronald E. Gray
Chief Financial Officer and Chief
Accounting Officer
12
5
9-MOS
DEC-31-1996
SEP-30-1996
6,481,516
8,613,308
18,800,000
0
0
34,219,029
3,264,451
2,095,340
35,388,140
1,217,191
0
0
0
131,854
33,663,837
34,219,029
0
2,161,863
0
0
0
0
79,332
(5,635,550)
0
0
0
0
0
(5,635,550)
(.54)
(.54)
