News Details

TDS Reports First Quarter 2009 Results

05/06/2009

Note: Comparisons are year over year unless otherwise noted.

1Q 2009 Highlights

Enterprise/TDS Corporate

- Operating revenues increased to $1,256.6 million.

- Repurchased 504,026 TDS Special Common Shares for $12.1 million.

Wireless/U.S. Cellular®

- 2 percent increase in service revenues, to $981.9 million.

- 36 percent increase in data revenues, to $157.0 million, representing 16 percent of service revenues.

- 1 percent increase in ARPU (average monthly service revenue per unit), to $52.54.

- Postpay churn remained low at 1.5 percent; postpay customers comprised 95 percent of retail customers.

- 8 percent increase in cell sites in service, to 6,942, of which approximately 4,000 are company-owned.

- Repurchased 367,000 common shares for $13.3 million to offset dilution from employee benefit plans.

Wireline/TDS Telecom®

- 21 percent increase in ILEC high-speed data customers, to 188,100; CLEC high-speed data customers totaled 39,700.

- 18 percent increase in ILEC data revenues, to $25.1 million.

- ILEC equivalent access lines increased 1 percent to 777,100, due in part to acquisitions; ILEC physical access lines decreased to 556,800.

CHICAGO, May 6 /PRNewswire-FirstCall/ -- Telephone and Data Systems, Inc. (NYSE: TDS - News, TDS.S - News) reported operating revenues of $1,256.6 million for the first quarter of 2009, an increase of less than 1 percent from $1,249.1 million in the comparable period one year ago.

"The TDS companies started the year with solid results," said LeRoy T. Carlson, Jr., TDS president and CEO. "Both our wireless business, U.S. Cellular, and our broadband and wireline business, TDS Telecom, made good progress on their core strategies and had gains in key areas.

"U.S. Cellular added customers in its target postpay segment, which makes up 95 percent of its retail base," added Carlson. "More U.S. Cellular customers are buying premium handsets and using more data, which increased data revenues and service revenues and resulted in our fourteenth-consecutive quarter of year-over-year ARPU growth.

"U.S. Cellular expects data revenues to continue to grow as it brings 3G speeds to more of its cell sites," continued Carlson, "and more customers have access to a high-quality and high-speed mobile broadband experience.

"TDS Telecom achieved year-over-year double-digit growth in the number of broadband customers and data revenues in its ILEC business," said Carlson. "The company's broadband network has been extended so that, at the end of the quarter, 91 percent of ILEC access lines were able to provide high-speed data. Existing broadband customers continue to migrate to higher data speeds, resulting in higher ARPU. TDS Telecom's consumer service and product bundles (including voice, broadband and video) are popular and are helping the company achieve greater customer penetration. The CLEC business is also increasing ARPU, by focusing on managedIP hosted solutions for commercial customers.

"The TDS companies are building long-term growth and value creation by offering high-demand services and products that run on fast, reliable networks, backed by the security of dedicated customer support organizations," added Carlson. "In addition, TDS was recently named one of the '100 Most Trustworthy Companies' in the United States by Forbes. We are proud of this distinction."

Guidance

Guidance for the year ending Dec. 31, 2009 is as follows. Guidance is unchanged from Feb. 26, 2009. There can be no assurance that final results will not differ materially from this guidance.

    U.S. Cellular 2009 guidance as of May 6, 2009 is as follows:
        Net Retail Customer Additions                         75,000-150,000
        Service Revenue                                $3,900-$4,000 million
        Operating Income(1)                                $275-$350 million
        Depreciation, Amortization & Accretion(1)       Approx. $600 million
        Capital Expenditures                            Approx. $575 million

    TDS Telecom (ILEC and CLEC) 2009 guidance as of May 6, 2009 is as follows:
        Operating Revenues                                 $780-$820 million
        Operating Income(1)                                $100-$130 million
        Depreciation, Amortization & Accretion(1)       Approx. $160 million
        Capital Expenditures                            Approx. $130 million

    (1) Includes losses on disposals of assets.


This guidance represents the views of management as of May 6, 2009 and should not be assumed to be accurate as of any other date. TDS undertakes no legal duty to update such information, whether as a result of new information, future events, or otherwise.

Stock Repurchase Summary

The following represents repurchases of both TDS common shares and TDS special common shares.

    Repurchase Period            # Shares        Cost (in millions)

    2009 (first quarter)         504,026              $12.1
    2008 (full year)           5,861,822             $199.6
    Total 2009 and 2008        6,365,848             $211.7


Conference call information

TDS will hold a conference call on May 6, 2009 at 10:00 a.m. Chicago time.

Before the call, certain financial and statistical information to be discussed during the call will be posted to the Conference Calls page of www.teldta.com, together with reconciliations to generally accepted accounting principles (GAAP) of any non-GAAP information to be disclosed. The call will be archived on the Conference Calls page of www.teldta.com.

About TDS

Telephone and Data Systems, Inc. (TDS), a Fortune 500® company, provides wireless, local and long-distance telephone, and broadband services to nearly 7.4 million customers in 36 states through its business units, U.S. Cellular (wireless) and TDS Telecom (wireline). Founded in 1969 and headquartered in Chicago, TDS employed 12,570 people as of March 31, 2009. For more information about TDS, visit www.teldta.com.

About U.S. Cellular®

United States Cellular Corporation, the nation's fifth-largest, full-service wireless carrier, provides a comprehensive range of wireless products and services, excellent customer support, and a high-quality network to nearly 6.2 million customers in 26 states. The Chicago-based company employed 8,800 full-time equivalent associates as of March 31, 2009. For more information about U.S. Cellular, visit www.uscellular.com.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: All information set forth in this news release, except historical and factual information, represents forward-looking statements. This includes all statements about the company's plans, beliefs, estimates and expectations. These statements are based on current estimates, projections and assumptions, which involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Important factors that may affect these forward-looking statements include, but are not limited to: The ability of U.S. Cellular to successfully grow its markets; the current credit crisis affecting financial markets, and its effects on the overall economy; competition; the access to and pricing of unbundled network elements; the ability to obtain or maintain roaming arrangements with other carriers; the state and federal telecommunications regulatory environment; the value of assets and investments; adverse changes in the ratings afforded TDS and U.S. Cellular debt securities by accredited ratings organizations; industry consolidation; advances in telecommunications technology; uncertainty of access to the capital markets; pending and future litigation; changes in income tax rates, laws, regulations or rulings; acquisitions/divestitures of properties and/or licenses; and changes in customer growth rates, average monthly revenue per unit, churn rates, roaming revenue and terms, the availability of handset devices, or the mix of products and services offered by U.S. Cellular and TDS Telecom. Investors are encouraged to consider these and other risks and uncertainties that are discussed in the Form 8-K used by TDS to furnish this press release to the SEC, which are incorporated by reference herein.

For more information about TDS and its subsidiaries, visit the Web sites at:

TDS: www.teldta.com

TDS Telecom: www.tdstelecom.com

USM: www.uscellular.com

As previously announced, TDS(TM) will hold a teleconference May 6, 2009 at 10:00 a.m. Chicago time. Interested parties may listen to the call live via the Internet by accessing the Conference Calls page of www.teldta.com.

                            UNITED STATES CELLULAR CORPORATION
                                 SUMMARY OPERATING DATA

    Quarter Ended    3/31/2009  12/31/2008   9/30/2008   6/30/2008   3/31/2008
    Total
     Population:
      Consolidated
       markets(1)   83,726,000  83,014,000  82,875,000  82,875,000  82,846,000
      Consolidated
       operating
       markets(1)   46,306,000  46,009,000  45,493,000  45,493,000  45,262,000
    All customers:
      Total at end
       of period     6,243,000   6,196,000   6,176,000   6,194,000   6,175,000
      Gross
       additions       404,000     395,000     367,000     365,000     408,000
      Net additions
       (losses)         47,000      20,000     (18,000)     16,000      73,000
    Market penetration
     at end of period:
      Consolidated
       markets(2)         7.5%        7.5%        7.5%        7.5%        7.5%
      Consolidated
       operating
       markets(2)        13.5%       13.5%       13.6%       13.6%       13.6%
    Retail customers:
      Total at end
       of period     5,770,000   5,707,000   5,674,000   5,677,000   5,640,000
      Gross
       additions       366,000     352,000     325,000     318,000     360,000
      Net postpay
       additions        60,000      41,000      12,000      33,000      72,000
      Net prepay
       additions
       (losses)          3,000      (8,000)    (15,000)      1,000      13,000

    Cell sites in
     service             6,942       6,877       6,716       6,596       6,452
    Average monthly
     revenue per
     unit(3)            $52.54      $52.71      $54.59      $53.27      $52.24
      Retail service
       revenue per
       unit(3) (5)      $46.78      $46.43      $46.97      $46.53      $46.18
      Inbound roaming
       revenue per
       unit(3) (5)       $3.21       $4.25       $5.03       $4.54       $3.95
      Other revenue
       per unit(3) (5)   $2.55       $2.03       $2.59       $2.20       $2.11
    Postpay churn
     rate(4)              1.5%        1.6%        1.6%        1.4%        1.4%
    Construction
     expenditures
     (000s)           $137,700    $190,000    $146,100    $137,800    $111,700


    (1) "Total population of consolidated markets" and "Total population of
     consolidated operating markets" are used only for the purposes of
     calculating market penetration of consolidated markets and consolidated
     operating markets, respectively, which is calculated by dividing
     customers by the total market population (without duplication of
     population in overlapping markets).
    (2) Calculated by dividing the number of wireless customers at the end of
     the period by the total population of consolidated markets and
     consolidated operating markets, respectively, as estimated by Claritas.
    (3) Per unit revenue measurements are derived from Service Revenues as
     reported in Financial Highlights for each respective quarter as follows:


    Service Revenues
    (000s)            $981,874    $976,952  $1,013,928    $987,352    $962,094
    Components:
    Retail service
     revenue (000s)    874,098     860,503     872,397     862,392     850,470
    Inbound roaming
     revenue (000s)     60,057      78,768      93,472      84,201      72,755
    Other revenue
     (000s)             47,719      37,681      48,059      40,759      38,869

    Divided by average
     customers (000s)    6,229       6,178       6,191       6,178       6,139
    Divided by three
     months in each
     quarter                 3           3           3           3           3

    Average monthly
     revenue per unit   $52.54      $52.71      $54.59      $53.27      $52.24
    Retail service
     revenue per unit   $46.78      $46.43      $46.97      $46.53      $46.18
    Inbound roaming
     revenue per unit    $3.21       $4.25       $5.03       $4.54       $3.95
    Other revenue per
     unit                $2.55       $2.03       $2.59       $2.20       $2.11


    (4) Postpay churn rate is calculated by dividing the total postpay
     customer disconnects during the quarter by the average postpay customer
     base for the quarter.
    (5) Long-distance revenue was reclassified in the fourth quarter of 2008
     from Long-distance/Other revenue to Retail service revenue and Inbound
     roaming revenue.  Previous quarters have been adjusted to reflect this
     change.



                            TELEPHONE AND DATA SYSTEMS, INC.
                                SUMMARY OPERATING DATA

    Quarter Ended       3/31/2009  12/31/2008  9/30/2008  6/30/2008  3/31/2008
    TDS Telecom
      ILEC:
      Access line
       equivalents(1)     777,100     776,700    773,700    774,300    767,100
      Physical access
       lines(2)           556,800     566,200    568,900    577,000    579,200
      High-speed data
       customers(3)       188,100     178,300    171,300    164,400    155,000
      Managed IP
       stations(4)          1,000         600        500        300        200
      Long-distance
       customers          348,900     347,000    346,600    346,100    344,900
      Construction
       expenditures
       (000s)             $21,400     $50,200    $33,300    $22,800    $14,600
      CLEC:
      Access line
       equivalents (1)    381,000     393,000    402,600    417,200    426,700
      High-speed data
       customers           39,700      40,800     41,900     43,100     43,700
      Managed IP
       stations(4)          4,100       2,100        600        500        400
      Construction
       expenditures
       (000s)              $5,000      $7,200     $4,500     $4,700     $3,500


    (1) Equivalent access lines are the sum of physical access lines and
     high-capacity data lines adjusted to estimate the equivalent number of
     physical access lines in terms of capacity plus the number of managed IP
     stations.
    (2) A physical access line is the individual circuit connecting a customer
     to a telephone company's central office facilities.
    (3) High-speed data customers are the number of customers provided high
     capacity data circuits via various technologies including digital
     subscriber line ("DSL"), managed Internet Protocol ("Managed IP"), and
     dedicated Internet circuit technologies.
    (4) Managed IP stations are the number of telephone handsets provided
     communications using packet networking technology.



                            TELEPHONE AND DATA SYSTEMS, INC.
                   CONSOLIDATED STATEMENTS OF OPERATIONS HIGHLIGHTS
                              Three Months Ended March 31,
        (Unaudited, dollars and shares in thousands, except per share amounts)

                                                           Increase/(Decrease)
                                          2009        2008    Amount  Percent
      Operating revenues
        U.S. Cellular                 $1,052,764  $1,037,856  $14,908     1%
        TDS Telecom                      199,302     206,076   (6,774)  (3)%
        All Other(1)                       4,580       5,169     (589) (11)%
                                       1,256,646   1,249,101    7,545     1%
      Operating expenses
        U.S. Cellular
           Expenses excluding
            depreciation, amortization
            and accretion                798,152     772,687   25,465     3%
           Depreciation, amortization
            and accretion                137,651     142,530   (4,879)  (3)%
           Loss on asset disposals, net    2,191       3,673   (1,482) (40)%
                                         937,994     918,890   19,104     2%
        TDS Telecom
           Expenses excluding
            depreciation, amortization
            and accretion                130,745     128,806    1,939     2%
           Depreciation, amortization
            and accretion                 41,863      39,508    2,355     6%
           Loss on asset disposals, net      215         (21)     236   N/M
                                         172,823     168,293    4,530     3%
        All Other(1)
           Expenses excluding
            depreciation and amortization  6,358       4,189    2,169    52%
           Depreciation and amortization   3,252       4,120     (868) (21)%
           Loss on asset disposals, net       10         ---       10   N/M
                                           9,620       8,309    1,311    16%

              Total Operating
               Expenses                1,120,437   1,095,492   24,945     2%
      Operating income (loss)
        U.S. Cellular                    114,770     118,966   (4,196)  (4)%
        TDS Telecom                       26,479      37,783  (11,304) (30)%
        All Other (1)                     (5,040)     (3,140)  (1,900) (61)%
                                         136,209     153,609  (17,400) (11)%
      Investment and other income
       (expense)
        Equity in earnings of
         unconsolidated entities          25,337      21,470    3,867    18%
        Interest and dividend income       2,072       9,746   (7,674) (79)%
        Interest expense                 (30,105)    (41,380)  11,275    27%
        Loss on investments and financial
         instruments                         ---      (3,490)   3,490   N/M
        Other, net                           499        (199)     698   N/M
           Total investment and other
            income (expense)              (2,197)    (13,853)  11,656    84%
      Income before income taxes         134,012     139,756   (5,744)  (4)%
        Income tax expense                40,638      49,251   (8,613) (17)%
      Net income                          93,374      90,505    2,869     3%
        Less: Net income attributable to
         noncontrolling interests,
         net of tax                      (21,366)    (17,018)  (4,348) (26)%
      Net income attributable to TDS      72,008      73,487   (1,479)  (2)%
        Preferred dividend requirement       (13)        (13)     ---     0%
      Net income available to common     $71,995     $73,474  $(1,479)  (2)%

      Basic weighted average shares
       outstanding                       112,238     117,570   (5,332)  (5)%
      Basic earnings per share
       attributable to TDS
       shareholders                        $0.64       $0.62     0.02     3%

      Diluted weighted average shares
       outstanding                       112,427     118,191   (5,764)  (5)%
      Diluted earnings per share
       attributable to TDS
       shareholders                        $0.64       $0.62    $0.02     3%

    (1) Consists of Suttle-Straus printing and distribution operations,
     corporate operations and intercompany eliminations.
    N/M - Percentage change not meaningful



                            TELEPHONE AND DATA SYSTEMS, INC.
                         CONSOLIDATED BALANCE SHEET HIGHLIGHTS
                           (Unaudited, dollars in thousands)

                                ASSETS

                                          March 31,   December 31,
                                             2009         2008
     Current assets
          Cash and cash equivalents        $756,267     $777,309
          Short-term investments             53,688       27,705
          Accounts receivable from
           customers and other              502,893      516,849
          Inventory                         113,384      122,377
          Other current assets              148,740      184,696
                                          1,574,972    1,628,936

     Investments
          Licenses                        1,453,690    1,441,440
          Goodwill                          707,840      707,079
          Customer lists                     30,978       34,032
          Investments in unconsolidated
           entities                         224,585      205,768
          Other investments                  10,385       10,623
                                          2,427,478    2,398,942

     Property, plant and equipment, net
          U.S. Cellular                   2,622,805    2,620,376
          TDS Telecom                       904,471      918,454
          Other                              28,797       30,094
                                          3,556,073    3,568,924

     Other assets and deferred charges       95,656       55,614

     Total assets                        $7,654,179   $7,652,416



                            TELEPHONE AND DATA SYSTEMS, INC.
                         CONSOLIDATED BALANCE SHEET HIGHLIGHTS
                           (Unaudited, dollars in thousands)

                          LIABILITIES AND STOCKHOLDERS' EQUITY

                                           March 31,  December 31,
                                              2009        2008

     Current liabilities
        Current portion of long-term debt    $17,431     $15,337
        Accounts payable                     271,141     319,575
        Customer deposits and deferred
         revenues                            173,278     174,101
        Accrued interest                      23,593      14,236
        Accrued taxes                         31,252      25,192
        Accrued compensation                  70,387      90,512
        Other current liabilities            115,759     134,334
                                             702,841     773,287

     Deferred liabilities and credits
        Net deferred income tax liability    477,490     471,623
        Other deferred liabilities and
         credits                             373,900     368,045
                                             851,390     839,668

     Long-term debt                        1,619,403   1,621,422

     Noncontrolling interests with
      redemption features                        612         589

     Preferred shares                            852         852

     Equity
        TDS stockholders' equity
        Common Shares, par value $.01            571         571
        Special Common Shares, par value
         $.01                                    634         634
        Series A Common Shares, par value
         $.01                                     65          65
        Capital in excess of par value     2,071,654   2,066,597
        Treasury shares, at cost:
           Common Shares                    (162,838)   (163,017)
           Special Common Shares            (360,464)   (350,091)
        Accumulated other comprehensive
         loss                                (16,365)    (16,812)
        Retained earnings                  2,288,917   2,229,540
           Total TDS stockholders' equity  3,822,174   3,767,487

        Noncontrolling interests             656,907     649,111

           Total equity                    4,479,081   4,416,598

     Total liabilities and equity         $7,654,179  $7,652,416



                            BALANCE SHEET HIGHLIGHTS
                                 March 31, 2009
                        (Unaudited, dollars in thousands)

                                                 TDS                    TDS
                              U.S.     TDS    Corporate Intercompany  Consoli-
                           Cellular  Telecom   & Other  Eliminations   dated
    Cash and cash
      equivalents           $191,797   $2,579  $561,891       $---    $756,267
     Affiliated cash
      investments                ---  577,768       ---   (577,768)        ---
     Notes
      receivable--affiliates     ---      ---   253,582   (253,582)        ---
                            $191,797 $580,347  $815,473  $(831,350)   $756,267

     Licenses, goodwill and
      customer lists      $1,948,058 $436,916 $(192,466)      $---  $2,192,508
     Investment in
      unconsolidated
      entities               175,571    6,521    47,254     (4,761)    224,585
     Other investments         4,265    2,574     3,546        ---      10,385
                          $2,127,894 $446,011 $(141,666)   $(4,761) $2,427,478


     Property, Plant and
      Equipment, net      $2,622,805 $904,471   $28,797       $---  $3,556,073

     Notes
      payable--affiliates       $--- $253,582  $577,768  $(831,350)       $---

     Long-term Debt:
       Current portion       $10,086     $428    $6,917       $---     $17,431
       Non-current portion   997,534    2,568   619,301        ---   1,619,403
          Total           $1,007,620   $2,996  $626,218       $---  $1,636,834

     Preferred Shares           $---     $---      $852       $---        $852

     Construction
      expenditures:
        Quarter ended
         3/31/09            $137,700  $26,400    $1,100       $---    $165,200




                             TDS Telecom Highlights
                           Three Months Ended March 31,
                        (Unaudited, dollars in thousands)

                                                          Increase (Decrease)
                                         2009     2008     Amount    Percent
     Local Telephone Operations
        Operating Revenues
           Voice                       $48,578  $51,576   $(2,998)      (6)%
           Data                         25,060   21,186     3,874        18%
           Network access               67,831   70,082    (2,251)      (3)%
           Miscellaneous                 8,718    8,971      (253)      (3)%
                                       150,187  151,815    (1,628)      (1)%
        Operating Expenses
           Cost of services and
            products                    47,684   44,834     2,850         6%
           Selling, general and
            administrative expenses     41,029   42,481    (1,452)      (3)%
           Depreciation, amortization
            and accretion               36,086   33,624     2,462         7%
           Loss on asset disposals, net    138      (21)      159       N/M
                                       124,937  120,918     4,019         3%

        Operating Income               $25,250  $30,897   $(5,647)     (18)%

     Competitive Local Exchange
      Carrier Operations
           Revenues                    $51,189  $56,129   $(4,940)      (9)%

           Expenses excluding
            depreciation, amortization
            and accretion               44,106   43,359       747         2%
           Depreciation, amortization
            and accretion                5,777    5,884      (107)      (2)%
           Loss on asset disposals, net     77      ---        77       N/M
                                        49,960   49,243       717         1%

        Operating Income                $1,229   $6,886   $(5,657)     (82)%

     Intercompany revenues             $(2,074) $(1,868)    $(206)      N/M
     Intercompany expenses              (2,074)  (1,868)     (206)      N/M
                                           ---      ---       ---

     Total TDS Telecom Operating
      Income                           $26,479  $37,783  $(11,304)     (30)%

     N/M - Percentage change not meaningful.



                            Telephone and Data Systems, Inc.
                          Consolidated Statement of Cash Flows
                                      (Unaudited)

                                                        Three Months Ended
                                                             March 31,
                                                         2009        2008
                                                      (Dollars in thousands)
    Cash flows from operating activities
        Net income                                      $93,374     $90,505
        Add (deduct) adjustments to reconcile net income
         to net cash flows from operating activities
              Depreciation, amortization and accretion  182,766     186,158
              Bad debts expense                          20,303      20,405
              Stock-based compensation expense            5,556       3,116
              Deferred income taxes, net                  4,934    (102,540)
              Loss on investments and financial
               instruments, net                               -       3,490
              Equity in earnings of unconsolidated
               entities                                 (25,337)    (21,470)
              Distributions from unconsolidated
               entities                                   6,029       7,047
              Loss on asset disposals, net                2,416       3,652
              Noncash interest expense                       96       5,319
              Excess tax benefit from stock awards           (3)     (1,138)
              Other operating activities                    (41)        189
           Changes in assets and liabilities from
            operations
              Accounts receivable                        (6,272)    (10,156)
              Inventory                                   7,720     (15,485)
              Accounts payable                          (48,271)    (14,529)
              Customer deposits and deferred revenues      (823)      6,162
              Accrued taxes                              34,865     149,349
              Accrued interest                            9,358       5,807
              Other assets and liabilities              (63,420)    (46,882)
                                                        223,250     268,999

     Cash flows from investing activities
        Additions to property, plant and equipment     (165,236)   (132,465)
        Cash paid for acquisitions and licenses         (14,582)   (107,685)
        Cash received from divestitures                       -       6,838
        Proceeds from disposition of investments              -      48,619
        Cash paid for short-term investments            (26,248)          -
        Other investing activities                        1,010         371
                                                       (205,056)   (184,322)

     Cash flows from financing activities
        Repayment of long-term debt                        (993)       (928)
        TDS Common Shares and Special Common Shares
         reissued for benefit plans, net of tax payments    383       1,103
        U.S. Cellular Common Shares reissued for
         benefit plans, net of tax payments                 356      (2,526)
        Excess tax benefit from stock awards                  3       1,138
        Repurchase of TDS Special Common Shares         (12,237)    (40,584)
        Repurchase of U.S. Cellular Common Shares       (13,291)     (6,201)
        Dividends paid                                  (12,057)        (13)
        Distributions to noncontrolling interests        (1,458)     (2,588)
        Other financing activities                           58       1,262
                                                        (39,236)    (49,337)

     Net increase (decrease) in cash and cash
      equivalents                                       (21,042)     35,340

     Cash and cash equivalents -
        Beginning of period                             777,309   1,174,446
        End of period                                  $756,267  $1,209,786


    The accompanying notes are an integral part of these consolidated
    financial statements.