Note 4 - Quasi-Reorganization
Effective as of January 1, 1994, the Company completed a capital restructuring
and quasi-reorganization. The quasi-reorganization resulted in the adjustment
of assets and liabilities to estimated fair values and the elimination of
an accumulated deficit effective January 1, 1994. Income tax benefits resulting
from the utilization of net operating loss and other carryforwards existing
at January 1, 1994 and temporary differences existing prior to or resulting
from the quasi-reorganization, are excluded from the results of operations
and credited to paid-in capital. During the year ended December 31, 2000
income tax benefits of $9,287,000, were excluded from results of operations
and not reflected as a reduction to the Company's provision for income taxes
but credited directly to paid-in capital. During the year ended December
31, 1998 income tax benefits of $1,650,000 were excluded from results of
operations and not reflected as a reduction to the Company's provision for
income taxes but credited directly to paid-in capital.
The $9,287,000 and $1,650,000 included in the Company's provision for income
taxes for the 2000 and 1998 periods, respectively, represents income taxes
which the Company will not be required to pay. As described above, the pre-quasi-reorganization
income tax benefits which would otherwise reduce the provision for income
taxes are credited directly to paid-in capital.
Stockholders' equity per common share increased by $4.62 per share during
the year ended December 31, 2000 as a result of the net income for the period
and the income tax benefits credited directly to paid-in capital for the
period, compared with an increase of $4.55 for the year ended December 31,
1999 and $1.06 for the year ended December 31, 1998.
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Notes
to Consolidated Financial Statements
